Mexican data center company KIO Networks has agreed to acquire U.S.-based provider of managed cloud computing, connectivity, and data center services firm redIT. Financial details of the deal have not been disclosed.
The acquisition bolsters data center service portfolio of the Mexican firm that has more than a dozen data centers across Latin America.
San Diego-based redIT owns as many as five data centers and six technology campuses. In addition, its fiber optic network in Mexico connects thousands of buildings in major cities across the country.
The acquisition brings Kio Networks a control over 12 technology campuses and 28 data centers in Americas. More than anything else, this acquisition expands KIO Netowrk’s footprint to the United States.
“We are confident that the integration will lead us to position ourselves as a leader in managed IT services,” said Murray Case, CEO of redIT, in a statement.
Last year, RedIT raised $72 million from Cartesian Capital Group and Digital Realty, saying it wants to expand the company’s data center operations throughout Mexico and the Southwestern United States.
“We see the integration of the two companies is far more than the sum of clients and services. The combination of talent from both organizations will enable us to conquer larger goals than ever,” said Sergio Rosengaus, CEO of KIO Networks.
With presence in Mexico, Panama, Guatemala and the Dominican Republic, KIO Networks is one of the fastest growing data center companies in Latin America. As many as 1,600 people are working at KIO Networks’ data centers in Central America alone.
A vast majority of its data centers, however, are in Mexico, while a few others are in Panama.
In January last year, KIO Networks stated that it would invest between $120 million and $130 million to build data centers across Latin America, including Colombia.
The deal is likely to be closed before the end of this month.