REDWOOD CITY, CA – Equinix, Inc. (Nasdaq: EQIX), the global interconnection and data center company, today announced it has entered into an agreement with Axtel S.A.B. de C.V. (BMV: AXTELCPO) to acquire three data centers that serve the Mexico City and Monterrey metro areas of Mexico for US$175 million in an all-cash transaction. The three facilities generated approximately $21 million of revenues in the 12 months ending December 31, 2018, with an EBITDA margin profile accretive to the Equinix business. The acquisition is expected to close in Q1 2020, subject to customary closing conditions including regulatory approval.
The addition of these three facilities in two strategic technology metros in Mexico is part of Equinix’s strategy of extending its global leadership into attractive large-growth markets. This acquisition, when combined with the previous acquisitions of key traffic hubs in Dallas (Infomart) and Miami (NAP of the Americas), will further strengthen Equinix’s global platform by increasing interconnection between North, Central and South America.
The three data centers will add approximately 115,000 square feet of colocation space to the Equinix International Business Exchange (IBX®) data center portfolio. Given the power capacity of these three sites, this transaction will make Equinix one of the largest network-neutral data center operators in Mexico. Including current expansion projects, Equinix has invested more than $500 million in its Latin American operations including Brazil, Colombia and now Mexico.
The expansion will support the important role Equinix plays in helping companies evolve from traditional businesses to digital businesses by globally interconnecting the people, locations, cloud services and data that are critical to their operations. Current and future customers will have the opportunity to operate on an expanded global interconnection platform to process, store and distribute larger volumes of latency-sensitive data and applications at the digital edge, closer to end-users and local markets.
Equinix, Inc. (Nasdaq: EQIX) connects the world’s leading businesses to their customers, employees and partners inside the most-interconnected data centers. On this global platform for digital business, companies come together across more than 50 markets on five continents to reach everywhere, interconnect everyone and integrate everything they need to create their digital futures.