Acquisitions follow company’s recent expansions in Malaysia and Indonesia as Southeast Asia Grows as a digital hub.
Equinix has entered the Philippines market with the acquisition of three data centers from Total Information Management (TIM).
Following the recently announced expansions in Malaysia and Indonesia, this strategic move aims to help businesses expand and capitalize on the digital opportunity of the fast-growing Southeast Asia region. The all-cash transaction represents a multiple of approximately 15x the projected EBITDA at full utilization and is expected to close in 2H 2024, subject to customary closing conditions.
The acquisition of the three high-performance data centers will provide capacity for Equinix to address the digital needs of local and overseas businesses in the Philippines.
Existing customers of TIM will also gain access to Equinix’s global ecosystems of more than 10,000 companies, including more than 2,000 networks and 3,000 cloud and IT service providers.
Southeast Asia’s digital economy grew to $218 billion in gross merchandise value (GMV) in 2023.
In particular, the Philippines’ digital economy is expected to continue its upward climb toward $35 billion by 2025, growing at a compound annual growth rate (CAGR) of 20%.
The country is also seeing a surge in demand for digital infrastructure services, driven by a highly engaged digital population, booming e-commerce adoption and various government initiatives to promote digitization.
Jeremy Deutsch, President, Asia-Pacific, Equinix, said: “This strategic acquisition, combined with our recent expansions in Malaysia and Indonesia, as well as the awarded data center capacity in Singapore, will greatly enhance our footprint in the region. The expanded digital infrastructure will also enable our customers to thrive and embrace digital transformation, harnessing the potential of emerging technologies like private AI. This acquisition perfectly aligns with our vision to extend our leadership in the Asia-Pacific region, while driving the acceleration of the digital economy.”
Jose Mari M. Antunez, Chairman, TIM, said: ” TIM will continue to remain as a system integrator, helping our customers through their digital transformation strategies, this deal will bring immense benefits to our customers.”
The three carrier-neutral and interconnection-rich data centers include more than 1,000 cabinets of capacity and land for further expansion.
As part of Equinix’s ambitious investment plans in the Asia-Pacific region, the company will expand in new markets including Jakarta, Indonesia (JK1) and Chennai, India (CN1) later this year.
With the capacity allocation by the government, Equinix will also expand its footprint in Singapore.
These expansions will reinforce Equinix’s leadership in the region and support the digital transformation of customers entering new markets.
The global footprint of Platform Equinix currently spans 260 data centers across 71 metros and 33 countries. In APAC, Equinix currently operates 56 data centers in 14 key metros across Australia, China, Hong Kong, India, Japan, Korea, Malaysia and Singapore – including the recently opened data centers in Johor (JH1) and Kuala Lumpur (KL1) in Malaysia.
