Equinix's Quarter 2 Profits Are Huge & the Data Center Giant Buys Up More Brazilian Real Estate

July 28, 2014

"For those of us with a firm grasp of the obvious, Equinix is huge, in the data center world. In fact it's so huge that it's gobbling up more and more smaller firms - as soon as it gets the chance, and today it got the chance.

The company has bought the remaining shares it did not already own in ALOG Data Centers of Brazil for $225 million (US) in cash. In April 2011, Equinix, together with Riverwood Capital, acquired a majority stake of ALOG, with Equinix holding a 53 percent ownership of the company. With today's announcement, Equinix has purchased the remaining 47 percent stake and will integrate the company into Equinix.

ALOG - A Know Standard In South America Now Mostly Controlled by Equinix
This probably doesn't seem like such a big deal to a company that is so cash-flow positive in Q2 that it basically held up the entire datacenter realm on its own.

In fact, the growing demand for Big Data has Equinix expanding its IBX data centers globally and becoming popular among tech companies looking for data management.

According to a company representative: the company expects its total addressable market for retail data centers to increase at a CAGR of 8.0% from 2013 to 2017 and reach $24.0 billion. Based on this projection, the company expects its revenues to increase at the rate of 10.0% through 2017.""

And we can expect more buying of smaller companies as Karl Strohmeyer, president of the Americas for Equinix: ""ALOG's strong position in Brazil and complementary business model provided Equinix the opportunity to establish a presence in an important emerging market and meet growing demand for data center services in Latin America. The ALOG team has done an outstanding job of leveraging the company's strength in Brazil - specifically in cloud and mobility - and integrating it into Equinix's global footprint to extend the world's leading data center platform into Brazil.""

What also should be noted is that Equinix is so in the black after Q2 that although setting up data centers requires huge capital outlays and Equinix plans to add more data centers in the coming quarters to satisfy the growing demand for co-location and interconnection services, the company, at least for now, shows no signs of slowing.
ALOG and Equinix are Now Completely Partnered
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    "For those of us with a firm grasp of the obvious, Equinix is huge, in the data center world. In fact it's so huge that it's gobbling up more and more smaller firms - as soon as it gets the chance, and today it got the chance. The company has ...