Equinix is taking part in a US$127 million deal to buy 90% of ALOG Data Centers of Brazil SA, expanding into South America for the first time. Investors in the transaction are Equinix and Riverwood Capital, a private-equity firm. Equinix will gain controlling interest in ALOG, with that company's current management team retaining a 10% stake.
Equinix, of Redwood City, Calif., runs 92 data centres in the US, Europe and Asia that businesses use to store data and run programs. ALOG has data centres in Sao Paulo and Rio de Janeiro and is nearly finished building a third. Acquiring existing data centres "is a very efficient way to go into a market," said Equinix Chief Executive Steve Smith. Building a new one can take over a year and cost more than US$100 million in some cases.
Source: Market Watch
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