The all-cash transaction represents a multiple of approximately 15x the projected EBITDA at full utilisation and is expected to close in the second half of the year.
Alongside other data centre operators and cloud providers, Equinix has identified Southeast Asia as a high-growth market, thanks to its rapidly growing digital economy, and young, online populations.
The move into the Philippines adds to Equinix’s recent expansion in Malaysia, which saw it open data centres in Johor and Kuala Lumpar in May.
An international business exchange data centre is also planned for Jakarta and expected to be open later this year.in Indonesia, following a $74 million investment announced by Equinix in 2022.
Jeremy Deutsch, Equinix’s president for Asia-Pacific said the expansion in these three markets as well as the awarded data centre capacity in Singapore, will greatly enhance Equinix’s footprint in the region.
“This 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," Deutsch said.
The three carrier-neutral and interconnection-rich data centres include more than 1,000 cabinets of capacity and land for further expansion. TIM will continue to act as a system integrator, helping its customers through digital transformation journeys.
As part of the deal, existing customers of TIM, including network and financial services companies, will 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.
Elsewhere in Asia, a data centre in Chenai, India is also expected to open this year.
Equinix currently operates 56 data centres 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.
