Equinix To Buy 4 Data Centers From Chile's Entel For $705 Mln - Quick Facts

(RTTNews) - Equinix, Inc. (EQIX), a digital infrastructure company, announced Friday its planned acquisition of four data centers from Chilean telecom provider Empresa Nacional De Telecomunicaciones S.A., or Entel for an enterprise value of around $705 million.

The acquisition would close in the second quarter, subject to the satisfaction of customary closing conditions. The deal is expected to be immediately accretive to Equinix's adjusted funds from operations per share upon close, excluding integration costs.

The acquisition includes three data centers in Chile, and may also include one data center in Peru pending finalization of a definitive agreement.

The four facilities generate approximately $53 million of annualized revenue. Under the deal, around 120 Entel employees and contractors are expected to become Equinix employees or contractors.

When closed, the transaction will expand Equinix's coverage in Chile and Peru.

Under the deal terms, 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 the deal, Citi served as exclusive financial advisor to Equinix.