Data centre operator Equinix and Riverwood Capital, a technology-focused private equity firm, have entered into a definitive agreement to acquire a 90 percent stake in Alog Data Centres of Brazil. The all-cash transaction is valued at approximately USD 127 million.

Equinix will hold controlling interest, Riverwood will hold a significant minority stake, and approximately 10 percent will be owned by current members of Alog’s management team. Via this investment, Equinix plans to expand its platform to South America, creating a footprint of 95 data centres across 37 global markets.

Alog is a carrier-neutral data centre services provider in Brazil and currently serves around 1,000 customers across its two data centres in Sao Paulo and Rio de Janeiro. The company is currently expanding its footprint to include a third data centre in Tambore (a suburb of Sao Paulo), which is on track to deliver Phase 1 capacity by March. Combined, the three ALOG data centres will total over 67,000 square feet of data centre space.