Equinix has agreed to acquire Axtel for $175 million in a cash deal as part of the strategy to expand in Mexico.
Axtel’s three data centers that serve the Mexico City and Monterrey metro areas of Mexico will be part of the deal. 40 Axtel employees and contractors, mainly in the operations of the acquired facilities, will become Equinix employees or contractors.
The three facilities generated approximately $21 million of revenues in the 12 months ending December 31, 2018, with an EBITDA margin profile accretive to the Equinix business. The acquisition is expected to close in Q1 2020.
The three data centers will add approximately 115,000 square feet of colocation space to the Equinix International Business Exchange (IBX) data center portfolio. Equinix has invested more than $500 million in its Latin American operations including Brazil, Colombia and now Mexico.
The two data centers that serve the Mexico City metro are located in Queretaro. The first facility is a 110,000 gross-square-foot data center with 37,000 square feet of colocation space.
The second facility is currently an 80,000 gross-square-foot data center with 6,000 square feet of colocation space. This facility will provide Equinix with expansion opportunities of up to 60,000 square feet of colocation space.
The Monterrey facility features 25,000 gross square feet of data center space with 12,500 square feet of colocation space.
Jon Lin, president, Americas, Equinix, said: “Three Axtel data centers that serve the Mexico City and Monterrey metros provide an optimal market entry for Equinix to bolster operations in the region.”