Monday, April 25, 2011

Equinix Acquires ALOG Data Centers of Brazil

Equinix has acquired ALOG Data Centers of Brazil S.A. in an all cash transaction valued at approximately $83 million—approximately $68 million as part of the acquisition and approximately $15 million to provide additional capital to fund future data center expansions.

ALOG serves approximately 1,000 customers across its two data centers in Sao Paulo and Rio de Janeiro. In June 2011, ALOG plans to open the first phase of its third data center, which will be located in Tamboré (a suburb of Sao Paulo). The Tamboré data center will provide approximately 400 cabinet equivalents, with the ability to expand to as much as another 1,200 cabinet equivalents.

Equinix now has a footprint of 95 data centers across 37 global markets. This is the company's first entrance into the South American market.

The deal was completed with financial backing from Riverwood Capital. Equinix will hold the controlling interest and sit on the board of directors for ALOG; Riverwood will hold a significant minority stake; and current members of ALOG's management team will hold approximately 10 percent ownership of the company, with Sidney Breyer remaining as CEO. Beginning three years following the close of the transaction, Equinix has the right, and in certain circumstances may be required, to acquire 100 percent of ALOG.