US data center firm Equinix (Nasdaq: EQIX) and compatriot private equity firm Riverwood Capital have acquired 90% of Brazilian data center company Alog for US$127mn, the companies announced in a statement.
Equinix will take a controlling interest in Alog, with a "significant minority stake" going to Riverwood. Alog management for the time being will hold on to 10%, which Equinix has the right to purchase starting in three years. Sidney Breyer will remain as Alog's CEO.
The Alog takeover will enable Equinix to spread its network, content, cloud and financial services to the Brazilian market. The firm's customers have expressed a demand for data centers in South America, Equinix added.
Alog's two data centers in São Paulo and Rio de Janeiro serve nearly 1,000 clients. The company plans to launch a third center next month.
Worldwide, Equinix maintains 95 data centers across 37 markets.