Company Purchased Remaining Stake from Riverwood Capital and Other Minority Shareholders, Fully Integrating ALOG into Equinix
REDWOOD CITY, Calif. — July 24, 2014 — Equinix, Inc. (NASDAQ:EQIX, news, filings), the global interconnection and data center company, today announced that it has closed a definitive agreement to complete the 100 percent acquisition of ALOG Data Centers of Brazil S.A. in an all cash transaction of $225M USD. In April 2011, Equinix, together with Riverwood Capital, acquired a majority stake of ALOG, with Equinix holding a 53 percent ownership of the company. With today’s announcement, Equinix has purchased the remaining 47 percent stake and will integrate the company into Equinix.
The completed acquisition of ALOG extends Platform Equinix™ to the Latin America market, creating a seamless experience for customers between Equinix’s global footprint of 101 International Business Exchange™ (IBX®) data centers across 32 markets. It also gives Equinix the ability to satisfy strong demand from its network, content, cloud, enterprise and financial services customers looking to establish a presence in the rapidly growing Brazilian market. According to an April 2014 report from World Bank, Brazil represents the world’s seventh largest economy and the second largest IT market in emerging markets behind China. Since the original announcement in 2011, Equinix customers representing companies from several vertical industries have expanded their infrastructure into Brazil including Cloudsigma, GlobeNet, Level 3, Orange Business Services and Telefonica.
“ALOG’s strong position in Brazil and complementary business model provided Equinix the opportunity to establish a presence in an important emerging market and meet growing demand for data center services in Latin America,” said Karl Strohmeyer, president of the Americas for Equinix. “The ALOG team has done an outstanding job of leveraging the company’s strength in Brazil – specifically in cloud and mobility – and integrating it into Equinix’s global footprint to extend the world’s leading data center platform into Brazil.”
“The successful partnership with Equinix and ALOG’s management has allowed ALOG to become the leading carrier-neutral data center provider in a high growth and large market such as Brazil,” added Francisco Alvarez Demalde, founding partner of Riverwood Capital. “ALOG is ready for this next phase of growth, and we wish the company continued success with the full integration into the Equinix platform.”
ALOG is among the leading carrier-neutral data center services providers in Brazil and serves approximately 1,500 customers across its four data centers in São Paulo and Rio de Janeiro. ALOG is the only provider to offer data center services in both São Paulo and Rio de Janiero, the largest markets in Brazil. Equinix is committed to the Latin American market and will continue to invest in this critical addition to the global Equinix platform.
In a separate announcement today Equinix announced the completion of the third phase of its second data center in São Paulo. To read the full press release, visit Equinix Completes Expansion of São Paulo Data Center.
- Equinix Completes Acquisition of Brazilian Data Center Provider ALOG [blog]
- Equinix Completes Acquisition of ALOG; Extends Platform into South America [press release]
- Equinix Expands to South America; Invests with Riverwood Capital to Acquire Controlling Interest in ALOG Data Centers of Brazil [press release]
Equinix, Inc. (NASDAQ: EQIX), connects more than 4,500 companies directly to their customers and partners inside the world's most networked data centers. Today, businesses leverage the Equinix interconection platform in 32 strategic markets across the Americas, EMEA and Asia-Pacific. http://www.equinix.com/.
Equinix and IBX are registered trademarks of Equinix, Inc.
International Business Exchange is a trademark of Equinix, Inc.
Forward Looking Statements
This press release contains forward-looking statements that involve risks and uncertainties. Actual results may differ materially from expectations discussed in such forward-looking statements. Factors that might cause such differences include, but are not limited to, the challenges of acquiring, operating and constructing IBX centers and developing, deploying and delivering Equinix services; unanticipated costs or difficulties relating to the integration of companies we have acquired or will acquire into Equinix; a failure to receive significant revenue from customers in recently built out or acquired data centers; failure to complete any financing arrangements contemplated from time to time; competition from existing and new competitors; the ability to generate sufficient cash flow or otherwise obtain funds to repay new or outstanding indebtedness; the loss or decline in business from our key customers; and other risks described from time to time in Equinix's filings with the Securities and Exchange Commission. In particular, see Equinix's recent quarterly and annual reports filed with the Securities and Exchange Commission, copies of which are available upon request from Equinix. Equinix does not assume any obligation to update the forward-looking information contained in this press release.