I Squared Capital is to acquire Mexican ICT and data center firm KIO Networks.

The infrastructure investment firm is buying the Mexico-based firm through its ISQ Global Infrastructure Fund III and ISQ Growth Markets Infrastructure Fund. Terms of the deal were not disclosed.

The company is the largest data center operator in Mexico and has 11 core data center campuses across Mexico, Guatemala, Nicaragua, Dominican Republica, and Spain, as well as 11 Edge facilities in Mexico. The company has over 20MW of installed operational capacity and what ISC described as “significant” expansion potential.

“Mexico is a core component of our Latin American strategy and this investment in KIO Networks continues our commitments to digital infrastructure, where we have committed over $3 billion across six investments around the world,” said Adil Rahmathulla, Managing Partner at I Squared Capital. “Our global digital infrastructure portfolio connects millions of people across four continents through a diverse set of assets including data centers, fiber networks, and cellular sites.”

KIO was previously owned by Tresalia Capital, which was reportedly exploring a $1 billion sale of the firm last year.

“We value and appreciate the trust that has been placed in KIO Networks to continue expanding and developing its service offering and accelerating digital transformation in the markets where it participates,” added Mariasun Aramburuzabala, CEO of Tresalia Capital.

ISC said KIO was well-positioned to “capture the rapid growth in demand for data storage and anchor the development of the I Squared Capital digital infrastructure strategy in Mexico and the rest of Latin America.”

Sergio Rosengaus, Co-founder and CEO of KIO Networks said: “We are grateful for the commitment and long-term loyalty of Tresalia Capital and the support and trust of our collaborators, clients, partners and community, and we are confident that we will continue to capture the growing demand for both our data centers and our IT infrastructure services in Mexico, Central America, the Caribbean and Spain. We are excited about the many opportunities that lie ahead in this next stage of our strategy. Growth.”

KIO previously had two facilities in the US, but sold them to Zayo in 2017. Both are now operated by DataBank. The company offers a number of cloud, data center, and cybersecurity services.

A version of this story appeared on our Spanish edition.

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