Equinix Completes Acquisition of ALOG; Extends Platform into South America
April 26 2011 - 8:00AM
Business Wire
Equinix, Inc. (Nasdaq:EQIX), a provider of global data center
services, and Riverwood Capital, a technology-focused private
equity firm, today announced the completion of their acquisition of
ALOG Data Centers of Brazil S.A. in an all cash transaction.
Equinix invested a total of 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.
The investment extends Platform Equinix™ to the South America
market, creating a footprint of 95 data centers across 37 global
markets. It also gives Equinix the ability to satisfy strong demand
from its network, content, cloud and financial services customers
looking to establish a presence in the rapidly growing Brazilian
market, the world’s seventh largest economy and the second largest
IT market in emerging markets behind China.
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.
“ALOG’s strong position in Brazil and complementary business
model enable us to quickly enter this emerging market and
accommodate our customers’ demands for data center services in
South America,” said Charles Meyers, president of the Americas for
Equinix. “Now that the acquisition is complete, we’ll be working
closely with ALOG management to ensure that the business,
operational and customer service processes meet Equinix standards,
and to ensure best-of-breed practices in data center build, design
and operation.”
ALOG is among the leading carrier-neutral data center services
providers in Brazil and 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.
About Riverwood Capital
Riverwood Capital is a globally-focused private equity firm that
invests in high-growth businesses in the technology and services
industries, across a variety of verticals and geographies.
Riverwood was established by a talented group of private equity and
technology industry executives, which gives Riverwood a unique
combination of operational, strategic, financial and technical
insight into investment candidates. The founders group includes
Michael Marks, Chris Varelas, Thomas Smach, Nicholas Brathwaite,
Francisco Alvarez-Demalde and Jeffrey Parks. Riverwood has offices
in Menlo Park, CA and New York, NY and currently has more than 20
investments in North America, Latin America and Asia. Please visit
www.riverwoodcapital.com
About Equinix
Equinix, Inc. (Nasdaq:EQIX) connects businesses with partners
and customers around the world through a global platform of high
performance data centers, containing dynamic ecosystems and the
broadest choice of networks. More than 3,275 enterprises, cloud,
digital content and financial companies connect to more than 625
network service providers and rely on Platform Equinix to grow
their business, improve application performance and protect their
vital digital assets. Equinix operates in 37 strategic markets
across the Americas, EMEA and Asia-Pacific and continually invests
in expanding its platform to power customer growth.
http://www.equinix.com
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 risks
and uncertainties associated with our investment in ALOG,
including, but not limited to, uncertainties associated with the
growth of Brazil’s IT market and its economy as a whole, the risks
of international operations and the challenges of realizing
expected synergies. We also face other general risks, including,
but 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.
Equinix and IBX are registered trademarks of Equinix, Inc.
International Business Exchange is a trademark of Equinix, Inc.
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