REDWOOD
CITY, Calif. and MANILA, The
Philippines, July 22,
2024 /PRNewswire/ -- Equinix, Inc. (Nasdaq: EQIX),
the world's digital infrastructure company®, today
announced its planned entry into the
Philippines with the acquisition of three data centers from
Total Information Management ("TIM"), a leading technology
solutions provider. Following the recently announced expansions in
Malaysia and Indonesia, this strategic move aims to help
businesses expand and capitalize on the digital opportunity of the
fast-growing Southeast Asia
region. The all-cash transaction represents a multiple of
approximately 15x the projected EBITDA at full utilization and is
expected to close in 2H 2024, subject to customary closing
conditions.
The acquisition of the three high-performance data centers will
provide capacity for Equinix to address the digital needs of local
and overseas businesses in the
Philippines. Enterprises, cloud and IT service providers,
and network service providers around the world can leverage
Platform Equinix® to interconnect and exchange data
privately and securely within a vibrant ecosystem of business
partners and customers. Existing customers of TIM, including
network and financial services companies, will also gain access to
Equinix's global ecosystems of more than 10,000 companies,
including more than 2,000 networks and 3,000 cloud and IT service
providers.
Southeast Asia's digital
economy grew to $218 billion in gross
merchandise value (GMV) in 2023.1 In particular,
the Philippines' digital economy
is expected to continue its upward climb toward $35 billion by 2025, growing at a compound annual
growth rate (CAGR) of 20%.2 The country is also seeing a
surge in demand for digital infrastructure services, driven by a
highly engaged digital population, booming e-commerce
adoption and various government initiatives to promote
digitization, such as the E-Government Masterplan 2022 and the
Digi-Ed 2028 program.
Jeremy Deutsch, President,
Asia-Pacific, Equinix said: "We are thrilled to announce
our expansion into the
Philippines, a vibrant and rapidly expanding digital economy
that presents immense opportunities for our valued customers and
partners. This strategic acquisition, combined with our recent
expansions in Malaysia and
Indonesia, as well as the awarded
data center capacity in Singapore,
will greatly enhance our footprint in the region. This expanded
digital infrastructure will also enable our customers to thrive and
embrace digital transformation, harnessing the potential of
emerging technologies like private AI. This acquisition perfectly
aligns with our vision to extend our leadership in the Asia-Pacific region, while driving the
acceleration of the digital economy."
Jose Mari M. Antunez,
Chairman, Total Information Management commented:
"Equinix's strong reputation and expertise in the industry make
them the ideal partner to take our data center business to new
heights. While TIM will continue to remain as a system integrator,
helping our customers through their digital transformation
strategies, this deal will bring immense benefits to our customers.
Equinix's global platform and extensive network will provide
enhanced connectivity, scalability and access to a thriving
ecosystem of partners. We are confident that Equinix's commitment
to excellence and customer-centric approach will ensure a seamless
transition and deliver unparalleled value to our customers."
Highlights / Key Facts
- The three carrier-neutral and interconnection-rich data centers
include more than 1,000 cabinets of capacity and land for further
expansion. These data centers will support the digital
transformation of local and global customers looking to expand into
the Philippines.
- As part of Equinix's ambitious investment plans in the
Asia-Pacific region, the company
will expand in new markets including Jakarta, Indonesia (JK1) and Chennai, India (CN1) later this year. With the
capacity allocation by the government, Equinix will also expand its
footprint in Singapore. These
expansions will reinforce Equinix's leadership in the region and
support the digital transformation of customers expanding into new
markets.
- Today, the global footprint of Platform Equinix spans 260
data centers across 71 metros and 33 countries. In Asia-Pacific, Equinix currently operates 56
data centers in 14 key metros across Australia, China, Hong
Kong, India, Japan, Korea, Malaysia and Singapore, including the recently opened data
centers in Johor (JH1) and
Kuala Lumpur (KL1) in Malaysia.
Additional Resources
- Equinix's Dual Metro Data Centers Propel Malaysia's Digital
Economy Ambition to New Heights [Press Release]
- Equinix Expands to Indonesia
with $74M Data Center
Investment [Press Release]
- Equinix and Astra Form a Joint
Venture to Support Indonesia's Growing Digital Needs [Press
release]
About Equinix
Equinix (Nasdaq: EQIX) is the
world's digital infrastructure company®. Digital leaders
harness Equinix's trusted platform to bring together and
interconnect foundational infrastructure at software speed. Equinix
enables organizations to access all the right places, partners and
possibilities to scale with agility, speed the launch of digital
services, deliver world-class experiences and multiply their value,
while supporting their sustainability goals.
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, risks to our business and operating results related to
the current inflationary environment; foreign currency exchange
rate fluctuations; stock price fluctuations; increased costs to
procure power and the general volatility in the global energy
market; the challenges of acquiring, operating and constructing
IBX® and xScale® data centers and developing,
deploying and delivering Equinix products and solutions;
unanticipated costs or difficulties relating to the integration of
companies we have acquired or will acquire into Equinix; a failure
to receive significant revenues 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; risks related to our taxation as a REIT; risks related
to regulatory inquiries or litigation and other risks described
from time to time in Equinix filings with the Securities and
Exchange Commission. In particular, see recent and upcoming Equinix
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.
1 Florian Hoppe, et al., "e-Conomy SEA 2023," Bain &
Company, Nov. 1, 2023.
2 "Country Spotlight: Philippines," Google e-Conomy SEA 2023,
Google, 2023.
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SOURCE Equinix, Inc.