REDWOOD CITY, Calif.,
May 20, 2015 /PRNewswire/
-- Equinix, Inc. (Nasdaq: EQIX), the global interconnection
and data center company, today announced that the U.S. Internal
Revenue Service ("IRS") has issued a favorable private letter
ruling ("PLR") in connection with Equinix's conversion to a real
estate investment trust ("REIT") for federal income tax purposes
effective for its taxable year commencing January 1, 2015. The PLR supports Equinix's
position with respect to numerous technical tax issues in
connection with Equinix's election of REIT status and conversion to
a REIT. In the PLR, the IRS addressed and favorably ruled on
Equinix's assets and revenue model (including data center assets as
qualified REIT assets and interconnection revenues as qualified
REIT revenues), its particular items of federal taxable income from
global operations, and its transition plans from a C-corporation to
a REIT (including proposed distributions to stockholders). In
accordance with the previously announced unanimous approval of
Equinix's conversion to a REIT by the Board of Directors of
Equinix, Equinix began its first day as a REIT on January 1, 2015.
"Equinix is excited to have received a favorable PLR," said
Steve Smith, president and CEO of
Equinix. "We are pleased with our current business momentum,
and the REIT structure positions us well to provide world-class
facilities and services to our customers through Platform Equinix,
and to deliver global profitable growth while creating increased
shareholder return as we scale our business."
About Equinix
Equinix, Inc. (Nasdaq: EQIX) connects the world's leading
businesses to their customers, employees and partners inside the
most interconnected data centers. In 33 markets across five
continents, Equinix is where companies come together to realize new
opportunities and accelerate their business, IT and cloud
strategies. www.equinix.com.
Equinix and IBX are registered trademarks of Equinix, Inc.
International Business Exchange is a trademark of Equinix, Inc.
Forward Looking Statements
This press release contains forward-looking statements that
involve risks and uncertainties. Actual results may differ
materially from expectations discussed in such forward-looking
statements. Factors that might cause such differences include, but
are not limited to, the challenges of acquiring, operating and
constructing IBX centers and developing, deploying and delivering
Equinix services; unanticipated costs or difficulties relating to
the integration of companies we have acquired or will acquire into
Equinix; a failure to receive significant revenue from customers in
recently built out or acquired data centers; failure to complete
any financing arrangements contemplated from time to time;
competition from existing and new competitors; the ability to
generate sufficient cash flow or otherwise obtain funds to repay
new or outstanding indebtedness; the loss or decline in business
from our key customers; and other risks described from time to time
in Equinix's filings with the Securities and Exchange Commission.
In particular, see Equinix's recent quarterly and annual reports
filed with the Securities and Exchange Commission, copies of which
are available upon request from Equinix. Equinix does not assume
any obligation to update the forward-looking information contained
in this press release.
Equinix and IBX are registered trademarks of Equinix, Inc.
International Business Exchange is a trademark of Equinix,
Inc.
Logo -
http://photos.prnewswire.com/prnh/20140102/MM39832LOGO
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/equinix-receives-favorable-reit-private-letter-ruling-from-the-irs-300086329.html
SOURCE Equinix, Inc.