...February 28, 2024 Sixsigma Networks Mexico S.A. de C.V. has kept its focus on expanding data center capacity and boosting its relationships with private sector customers. Since its acquisition by I Squared Capital (ISQ; not rated) in 2021, Sixsigma Networks Mexico -- KIO Networks--has benefited from about 8.2 billion Mexican pesos (MXN) of equity injections from its parent company. The broad focus for these resources has been to reduce short-term debt exposure and fund capital expenditures for expansion, resulting in an increase in data center capacity of nearly 22%, which has allowed the company to retake its growth trajectory while minimizing liquidity exposure. In 2023, KIO Networks acquired a data center in Colombia and continued to expand in Mexico. We believe that data center capacity will keep driving the growth strategy, and we think the company can also bolster business opportunities with private-sector clients for the IT services segment. The announced lower renewal rate for government...
