Equinix to Extend its Digital Infrastructure Platform to the Philippines with Acquisition of Three Data Centers
Equinix (Nasdaq: EQIX) has announced its planned entry into the Philippines with the acquisition of three data centers from Total Information Management (TIM). This strategic move aims to expand Equinix's digital infrastructure platform and capitalize on the fast-growing Southeast Asian market. The all-cash transaction, valued at approximately 15x projected EBITDA at full utilization, is expected to close in 2H 2024.
The acquisition will provide Equinix with capacity to address digital needs of businesses in the Philippines, offering access to Platform Equinix® for secure data exchange within a global ecosystem. The Philippines' digital economy is projected to reach $35 billion by 2025, growing at a 20% CAGR. This expansion aligns with Equinix's vision to extend its leadership in the Asia-Pacific region and accelerate digital economy growth.
Equinix (Nasdaq: EQIX) ha annunciato la sua prevista entrata nelle Filippine con l'acquisizione di tre data center da Total Information Management (TIM). Questa mossa strategica mira ad espandere la piattaforma infrastrutturale digitale di Equinix e a capitalizzare sul mercato in rapida crescita del Sud-Est asiatico. La transazione interamente in contante, valutata a circa 15 volte l'EBITDA previsto a pieno utilizzo, dovrebbe chiudersi nel secondo semestre del 2024.
L'acquisizione fornirà a Equinix la capacità di soddisfare le esigenze digitali delle imprese nelle Filippine, offrendo accesso a Platform Equinix® per uno scambio sicuro di dati all'interno di un ecosistema globale. Si prevede che l'economia digitale delle Filippine raggiunga i 35 miliardi di dollari entro il 2025, con una crescita del 20% CAGR. Questa espansione si allinea con la visione di Equinix di estendere la sua leadership nella regione Asia-Pacifico e accelerare la crescita dell'economia digitale.
Equinix (Nasdaq: EQIX) ha anunciado su entrada prevista en Filipinas con la adquisición de tres centros de datos de Total Information Management (TIM). Este movimiento estratégico tiene como objetivo expandir la plataforma de infraestructura digital de Equinix y capitalizar el creciente mercado del sudeste asiático. La transacción, que se realiza en efectivo y está valorada en aproximadamente 15 veces el EBITDA proyectado a plena utilización, se espera que se cierre en la segunda mitad de 2024.
La adquisición proporcionará a Equinix la capacidad de atender las necesidades digitales de las empresas en Filipinas, ofreciendo acceso a Platform Equinix® para un intercambio de datos seguro dentro de un ecosistema global. Se proyecta que la economía digital de Filipinas alcanzará los 35 mil millones de dólares para 2025, con un crecimiento del 20% CAGR. Esta expansión se alinea con la visión de Equinix de extender su liderazgo en la región de Asia-Pacífico y acelerar el crecimiento de la economía digital.
Equinix (Nasdaq: EQIX)는 필리핀에 대한 진출 계획을 발표하며 Total Information Management (TIM)로부터 세 개의 데이터 센터를 인수하기로 했습니다. 이 전략적 움직임은 Equinix의 디지털 인프라 플랫폼을 확장하고 급성장하는 동남아시아 시장을 활용하기 위한 것입니다. 전체 현금 거래로, 가득 사용할 경우 예상 EBITDA의 약 15배에 해당하는 가치로, 2024년 하반기에 완료될 것으로 예상됩니다.
이번 인수는 Equinix에 필리핀의 기업들이 디지털 필요를 충족할 수 있는 용량을 제공하며, 글로벌 생태계 내에서 안전한 데이터 교환을 위한 Platform Equinix®에 대한 접근을 제공합니다. 필리핀의 디지털 경제는 2025년까지 350억 달러에 이를 것으로 예상되며, 연평균 20% 성장할 것입니다. 이번 확장은 아시아-태평양 지역에서 Equinix의 리더십을 확장하고 디지털 경제 성장을 가속화하고자 하는 비전과 일치합니다.
Equinix (Nasdaq: EQIX) a annoncé son entrée planifiée aux Philippines avec l'acquisition de trois centres de données de Total Information Management (TIM). Ce mouvement stratégique vise à étendre la plateforme d'infrastructure numérique d'Equinix et à capitaliser sur le marché en forte croissance de l'Asie du Sud-Est. La transaction, entièrement en espèces et d'une valeur d'environ 15 fois l'EBITDA projeté à pleine utilisation, devrait se conclure au second semestre 2024.
L'acquisition fournira à Equinix la capacité de répondre aux besoins numériques des entreprises aux Philippines, offrant un accès à Platform Equinix® pour un échange de données sécurisé au sein d'un écosystème mondial. L'économie numérique des Philippines devrait atteindre 35 milliards de dollars d'ici 2025, avec une croissance de 20 % CAGR. Cette expansion s'aligne avec la vision d'Equinix d'étendre son leadership dans la région Asie-Pacifique et d'accélérer la croissance de l'économie numérique.
Equinix (Nasdaq: EQIX) hat seinen geplanten Einstieg auf den Philippinen mit der Übernahme von drei Rechenzentren von Total Information Management (TIM) bekannt gegeben. Dieser strategische Schritt zielt darauf ab, die digitale Infrastrukturplattform von Equinix auszubauen und von dem schnell wachsenden Markt in Südostasien zu profitieren. Die vollständig in bar abgewickelte Transaktion, die mit etwa 15-fachem EBITDA bei voller Auslastung bewertet wird, soll in der zweiten Hälfte von 2024 abgeschlossen werden.
Die Übernahme wird Equinix die Kapazität bieten, die digitalen Bedürfnisse von Unternehmen auf den Philippinen zu adressieren, und den Zugang zu Platform Equinix® für einen sicheren Datenaustausch innerhalb eines globalen Ökosystems ermöglichen. Es wird prognostiziert, dass die digitale Wirtschaft der Philippinen bis 2025 35 Milliarden US-Dollar erreichen wird, mit einem jährlichen Wachstum von 20%. Diese Expansion stimmt mit der Vision von Equinix überein, ihre Führungsposition in der Region Asien-Pazifik auszubauen und das Wachstum der digitalen Wirtschaft zu beschleunigen.
- Acquisition of three high-performance data centers in the Philippines
- Entry into a rapidly expanding digital economy with 20% CAGR
- Access to a market projected to reach $35 billion by 2025
- Expansion of Equinix's global footprint and ecosystem
- Potential for further expansion with acquired land
- High acquisition cost at 15x projected EBITDA
- Potential integration challenges in a new market
- Regulatory risks associated with entering a new country
Insights
Financial Impact: The acquisition of three data centers in the Philippines is a strategic move for Equinix, considering the digital economy in Southeast Asia is on a growth trajectory. The all-cash transaction at a multiple of 15x projected EBITDA suggests a confident investment, reflecting high growth potential. The EBITDA multiple is a significant indicator as it shows the valuation relative to earnings before interest, taxes, depreciation and amortization. This figure is essential for investors as it highlights the expected profitability and operational efficiency once the data centers are fully utilized. Furthermore, the anticipated closure of the deal in 2H 2024 aligns with Equinix's expansion timeline, demonstrating their robust execution strategy. For stakeholders, this news might indicate a favorable impact on share value, given the region's high demand for digital infrastructure and the company's ambitious expansion plans.
Market Expansion: Entering the Philippines market is a smart strategic move for Equinix, given the country's growing digital economy, projected to reach $35 billion by 2025. The acquisition enables Equinix to tap into a market with a 20% CAGR, underscoring substantial growth opportunities. This move not only diversifies its market presence but also consolidates its role as a major player in Southeast Asia's digital infrastructure landscape. The integration of TIM's existing customer base with Equinix’s vast global network can provide significant cross-selling and upselling opportunities, enhancing revenue streams. For long-term investors, this expansion could signify a steady increase in market share and competitive advantage in a rapidly digitizing region.
Technological Synergy: The acquisition of high-performance data centers is a technological boon for Equinix, allowing it to bolster its capabilities in a critical and growing market. The integration with Equinix’s Platform Equinix® can offer enhanced connectivity and scalability to both local and global clients. This is important as businesses increasingly seek secure and efficient data exchange solutions. Equinix’s existing technological infrastructure and expertise will undoubtedly enhance the performance and reliability of the acquired data centers, potentially driving innovation and customer satisfaction. For tech-driven investors, this represents not just an expansion, but a significant upgrade in technological assets that could usher in advanced services such as AI and cloud solutions.
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
Jeremy Deutsch, President, Asia-Pacific, Equinix said: "We are thrilled to announce our expansion into
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 includingJakarta, Indonesia (JK1) andChennai, India (CN1) later this year. With the capacity allocation by the government, Equinix will also expand its footprint inSingapore . 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 acrossAustralia ,China ,Hong Kong ,India ,Japan ,Korea ,Malaysia andSingapore , including the recently opened data centers in Johor (JH1) andKuala Lumpur (KL1) inMalaysia .
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 - 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:
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SOURCE Equinix, Inc.
FAQ
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