Digital infrastructure company Equinix plans to enter the Philippine market by acquiring three data centres from technology solutions provider Total Information Management (TIM).
Following the recent expansion in Malaysia and Indonesia, this move aims to help businesses expand and capitalise on the digital opportunity of the Southeast Asia region.
Equinix claims the transaction represents “a multiple of approximately 15x the projected Ebitda at full utilisation and is expected to close in 2H 2024, subject to customary closing conditions.”
The three data centres will provide capacity for Equinix to address the digital needs of local and overseas businesses in the Philippines.
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Existing customers of TIM will gain access to Equinix’s ecosystems of more than 10,00 companies, including more than 2,000 networks and 3,000 cloud and IT service providers.
Southeast Asia’s digital economy grew to US$218 billion in gross merchandise value (GMV) in 2023.
In particular, the Philippines’ digital economy is expected to continue its upward climb toward US$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 digitisation, such as the E-Government Masterplan 2022 and the Digi-Ed 2028 program.
“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,” says Equinix Asia Pacific president Jeremy Deutsch.
“While 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,” says TIM chairman Jose Mari M. Antunez.
“Equinix's global platform and extensive network will provide enhanced connectivity, scalability and access to a thriving ecosystem of partners.”