Equinix's entry into the Brazilian data center market is now officially complete. Yesterday they announced the purchase of the 47% of ALOG Data Centers that it didn't already own, bringing two data centers in Rio de Janeiro and two more in Sao Paolo all the way into their orbit.
Almost three and a half years ago, Equinix partnered with Riverwood Capital to purchase ALOG's data center business for some $127M, with ALOG's management team also holding a stake. The deal gave Equinix a strong foothold in South America while spreading around the risk of moving into unfamiliar territory. But it also meant that those Brazilian data centers weren't fully their own, so after liking what South America had to offer they have moved to buy out their joint venture partners.
The remaining 47% of ALOG cost them $225M, a substantial premium to what the business was worth back in 2011. Riverwood Capital certainly did well with the investment. And now Equinix has integrated ALOG's footprint fully into their ecosystem.
Simultaneously, Equinix and ALOG announced the completion of an expansion project in Sao Paolo. Phase III of their second Sao Paolo facility has been built out, finishing up a month ahead of schedule in order to keep up with strong local demand. The expansion nearly doubled the size of the facility by adding space for 600 cabinets for some $22M. I'm guessing it won't be long before the next buildout project in Brazil gets announced.
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