April 26, 2011
Equinix Completes Acquisition of ALOG; Extends Platform into South America
Investing with Riverwood Capital, Equinix Acquires Controlling Interest in ALOG Data Centers of Brazil
REDWOOD CITY, Calif. – April 26, 2011 – 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
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.
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