Carey advised Equinix on the transaction in Chile.
Equinix, Inc. executed its expansion into Chile and Peru through the acquisition of four data centers from Empresa Nacional De Telecomunicaciones S.A., a leading Chilean telecommunications provider, for an enterprise value of approximately US$705 million. The acquisition is expected to close in Q2 of 2022, subject to the satisfaction of customary closing conditions, and is expected to be immediately accretive to Equinix’s adjusted funds from operations (AFFO) per share upon close, excluding integration costs. The transaction includes three data centers in Chile; the transaction may also include one data center in Peru pending finalization of a definitive agreement.
Chile is the fourth-largest economy in South America, with the highest GDP per capita in the region. Santiago is emerging as a technology hub in South America, serving both regional cloud and content demand as well as local enterprises. According to IDC, enterprise edge spending in Latin America is expected to reach $8.573 billion by 2024, and in Chile it is anticipated to grow by double digits in the same period. Furthermore, between 2020 and 2024, IDC anticipates that cloud spending in Chile will increase 34.6%.1
When closed, the transaction will expand Equinix’s coverage in this strategic market, solidifying its leadership as the top regional provider of digital infrastructure services. With three data center sites in Santiago, Chile, the transaction also includes significant expansion capacity for future growth in Santiago, allowing Equinix to support both immediate and future growth in the region. Under the terms of the agreement, Equinix and Entel have agreed to form a strategic partnership to enable enterprises in Chile and Peru to leverage hybrid multicloud solutions to accelerate their digital transformation.
In Chile, Carey advised Equinix with a team including Francisco Ugarte (Picture), Alejandra Daroch, Eduardo Martin, Manuel José Barros, Tomás Varela, Daniela Soto, Alicia Corbo and Pablo Bauer
Involved fees earner: Manuel José Barros – Carey; Pablo Bauer – Carey; Alicia Corbo – Carey; Alejandra Daroch – Carey; Eduardo Martin – Carey; Daniela Soto – Carey; Francisco Ugarte – Carey; Tomas Varela – Carey;
Law Firms: Carey;