Entel agreed to sell four of its Data Centers -three in Chile and one in Peru- to the North American multinational Equinix. With the transaction, the technology and telecommunications company obtained a valuation of these assets for an amount equivalent to US $736 million, as reported in an Essential Fact sent to the Financial Market Commission (CMF). Of the total, US $662 million correspond to the data centers in Chile and US $74 million to the data center located in Lima.
The signing of the agreement for the sale of the assets in Chile took place yesterday and the sale of the assets in Peru is expected to take place in the coming weeks. The closing of both operations is expected to take place in the second quarter of this year.
It was also announced that, as part of this transaction, service agreements were also agreed with Equinix for Entel’s housing services needs, and a commercial agreement to jointly address the Chilean market.
“The decision to sell these data centers is due to our ongoing evaluation regarding the strategic value of the infrastructure we operate and the need to focus resources on those businesses where Entel can make a real difference and add value for its customers and shareholders. This also allows us to focus on attracting and developing talent to work on the new solutions required by our customers”, explained Entel’s CEO, Antonio Büchi.
“We know that the global technological ecosystem is evolving at a dizzying pace and, in this context, large companies specializing in the development and efficient management of data centers have consolidated. This is the case of Equinix, which is one of the world’s leading multinationals in this industry. Entel is also a very different company today than it was a few years ago and this operation, more than just a sale of infrastructure, is the beginning of a fundamental strategic alliance in our objective of continuing to grow in the development of managed information technology services and digital solutions with IoT, Bigdata Analytics, AI and Cloud technologies", Büchi emphasized.
In that sense, he said that this should be good news for Entel’s current customers, since thanks to this partnership the technology and telecommunications company and Equinix will be allies in the provision of Hybrid Cloud services, among others, which will be available not only for those companies that have already chosen Entel as a partner in their digital transformation process, but also for those customers to whom Entel currently provides only the housing service in these data centers.
According to Antonio Büchi, Entel shares a series of values and pillars with Equinix, which since its inception has been committed to the development of sustainable infrastructure, and assured that the quality of the data centers they have developed was fundamental in the interest of this multinational and in the success of this transaction.
Entel’s data centers have been recognized on different occasions for their high standards in terms of operational continuity and sustainability. Specifically, the “Ciudad de los Valles III” center is the only one in Chile with TIER IV Gold certification in Operational Sustainability and has been recognized by the Uptime Institute for its efficient use of energy, making it one of the most efficient Tier IV centers operated today in our country and worldwide.
Bank of America was the investment bank that advised on the transaction.
About Equinix
Equinix is a U.S. digital infrastructure company founded in Silicon Valley in 1998. It currently operates more than 220 data centers in more than 60 markets with a presence on five continents. It works with organizations in different industries, such as finance, telecommunications, manufacturing, transportation, mobility, healthcare, education and government institutions.
Thanks to this operation, Entel will have a presence in the four countries that make up the Pacific Alliance trade bloc.
About Entel
Entel is a leading technology and telecommunications company with operations in Chile and Peru, countries where it has more than 20 million mobile subscribers and consolidated annual revenues of Ch$2,460,119 million as of December 2021.
The company offers mobile and fixed connectivity services, as well as a wide range of IT and digital services for individuals, businesses and large corporations. In both countries it provides wholesale and call center services.
In each of these services it delivers simple and efficient experiences, supported by a robust, state-of-the-art infrastructure.
18 Mar, 2022
Entel agreed to sell four of its Data Centers -three in Chile and one in Peru- to the North American multinational Equinix. With the transaction, the technology and telecommunications company obtained a valuation of these assets for an amount equivalent to US $736 million, as reported in an Essential Fact sent to the Financial Market Commission (CMF). Of the total, US $662 million correspond to the data centers in Chile and US $74 million to the data center located in Lima.
The signing of the agreement for the sale of the assets in Chile took place yesterday and the sale of the assets in Peru is expected to take place in the coming weeks. The closing of both operations is expected to take place in the second quarter of this year.
It was also announced that, as part of this transaction, service agreements were also agreed with Equinix for Entel’s housing services needs, and a commercial agreement to jointly address the Chilean market.
“The decision to sell these data centers is due to our ongoing evaluation regarding the strategic value of the infrastructure we operate and the need to focus resources on those businesses where Entel can make a real difference and add value for its customers and shareholders. This also allows us to focus on attracting and developing talent to work on the new solutions required by our customers”, explained Entel’s CEO, Antonio Büchi.
“We know that the global technological ecosystem is evolving at a dizzying pace and, in this context, large companies specializing in the development and efficient management of data centers have consolidated. This is the case of Equinix, which is one of the world’s leading multinationals in this industry. Entel is also a very different company today than it was a few years ago and this operation, more than just a sale of infrastructure, is the beginning of a fundamental strategic alliance in our objective of continuing to grow in the development of managed information technology services and digital solutions with IoT, Bigdata Analytics, AI and Cloud technologies", Büchi emphasized.
In that sense, he said that this should be good news for Entel’s current customers, since thanks to this partnership the technology and telecommunications company and Equinix will be allies in the provision of Hybrid Cloud services, among others, which will be available not only for those companies that have already chosen Entel as a partner in their digital transformation process, but also for those customers to whom Entel currently provides only the housing service in these data centers.
According to Antonio Büchi, Entel shares a series of values and pillars with Equinix, which since its inception has been committed to the development of sustainable infrastructure, and assured that the quality of the data centers they have developed was fundamental in the interest of this multinational and in the success of this transaction.
Entel’s data centers have been recognized on different occasions for their high standards in terms of operational continuity and sustainability. Specifically, the “Ciudad de los Valles III” center is the only one in Chile with TIER IV Gold certification in Operational Sustainability and has been recognized by the Uptime Institute for its efficient use of energy, making it one of the most efficient Tier IV centers operated today in our country and worldwide.
Bank of America was the investment bank that advised on the transaction.
About Equinix
Equinix is a U.S. digital infrastructure company founded in Silicon Valley in 1998. It currently operates more than 220 data centers in more than 60 markets with a presence on five continents. It works with organizations in different industries, such as finance, telecommunications, manufacturing, transportation, mobility, healthcare, education and government institutions.
Thanks to this operation, Entel will have a presence in the four countries that make up the Pacific Alliance trade bloc.
About Entel
Entel is a leading technology and telecommunications company with operations in Chile and Peru, countries where it has more than 20 million mobile subscribers and consolidated annual revenues of Ch$2,460,119 million as of December 2021.
The company offers mobile and fixed connectivity services, as well as a wide range of IT and digital services for individuals, businesses and large corporations. In both countries it provides wholesale and call center services.
In each of these services it delivers simple and efficient experiences, supported by a robust, state-of-the-art infrastructure.
Entel agreed to sell four of its Data Centers -three in Chile and one in Peru- to the North American multinational Equinix. With the transaction, the technology and telecommunications company obtained a valuation of these assets for an amount equivalent to US $736 million, as reported in an Essential Fact sent to the Financial Market Commission (CMF). Of the total, US $662 million correspond to the data centers in Chile and US $74 million to the data center located in Lima.
The signing of the agreement for the sale of the assets in Chile took place yesterday and the sale of the assets in Peru is expected to take place in the coming weeks. The closing of both operations is expected to take place in the second quarter of this year.
It was also announced that, as part of this transaction, service agreements were also agreed with Equinix for Entel’s housing services needs, and a commercial agreement to jointly address the Chilean market.
“The decision to sell these data centers is due to our ongoing evaluation regarding the strategic value of the infrastructure we operate and the need to focus resources on those businesses where Entel can make a real difference and add value for its customers and shareholders. This also allows us to focus on attracting and developing talent to work on the new solutions required by our customers”, explained Entel’s CEO, Antonio Büchi.
“We know that the global technological ecosystem is evolving at a dizzying pace and, in this context, large companies specializing in the development and efficient management of data centers have consolidated. This is the case of Equinix, which is one of the world’s leading multinationals in this industry. Entel is also a very different company today than it was a few years ago and this operation, more than just a sale of infrastructure, is the beginning of a fundamental strategic alliance in our objective of continuing to grow in the development of managed information technology services and digital solutions with IoT, Bigdata Analytics, AI and Cloud technologies", Büchi emphasized.
In that sense, he said that this should be good news for Entel’s current customers, since thanks to this partnership the technology and telecommunications company and Equinix will be allies in the provision of Hybrid Cloud services, among others, which will be available not only for those companies that have already chosen Entel as a partner in their digital transformation process, but also for those customers to whom Entel currently provides only the housing service in these data centers.
According to Antonio Büchi, Entel shares a series of values and pillars with Equinix, which since its inception has been committed to the development of sustainable infrastructure, and assured that the quality of the data centers they have developed was fundamental in the interest of this multinational and in the success of this transaction.
Entel’s data centers have been recognized on different occasions for their high standards in terms of operational continuity and sustainability. Specifically, the “Ciudad de los Valles III” center is the only one in Chile with TIER IV Gold certification in Operational Sustainability and has been recognized by the Uptime Institute for its efficient use of energy, making it one of the most efficient Tier IV centers operated today in our country and worldwide.
Bank of America was the investment bank that advised on the transaction.
About Equinix
Equinix is a U.S. digital infrastructure company founded in Silicon Valley in 1998. It currently operates more than 220 data centers in more than 60 markets with a presence on five continents. It works with organizations in different industries, such as finance, telecommunications, manufacturing, transportation, mobility, healthcare, education and government institutions.
Thanks to this operation, Entel will have a presence in the four countries that make up the Pacific Alliance trade bloc.
About Entel
Entel is a leading technology and telecommunications company with operations in Chile and Peru, countries where it has more than 20 million mobile subscribers and consolidated annual revenues of Ch$2,460,119 million as of December 2021.
The company offers mobile and fixed connectivity services, as well as a wide range of IT and digital services for individuals, businesses and large corporations. In both countries it provides wholesale and call center services.
In each of these services it delivers simple and efficient experiences, supported by a robust, state-of-the-art infrastructure.