REDWOOD CITY, Calif.,
Nov. 13, 2015 /PRNewswire/
-- Equinix, Inc. (Nasdaq: EQIX), the global interconnection
and data center company, today announced that it has obtained
clearance from the European Commission on its offer to acquire
TelecityGroup plc, previously announced in May of this year.
The combination of Equinix and TelecityGroup will enable Equinix to
expand its platform throughout key European markets and further its
strategy to increase network and cloud density in these
markets. The clearance follows the European Commission
approval of agreed commitments proposed by Equinix and
TelecityGroup to divest certain facilities. Following this
approval, Equinix expects the transaction to close early in the
first half of 2016.
Highlights / Key Facts:
- As a result of obtaining this clearance, the pre-condition of
the offer has been satisfied and the required scheme of arrangement
documents are expected to be posted to TelecityGroup shareholders
by the end of November, with a meeting of TelecityGroup
shareholders to approve the transaction to follow. The scheme
of arrangement documents will include full details of the offer and
the expected timetable of completion.
- As part of the clearance, Equinix and TelecityGroup have agreed
to divest the following facilities: TelecityGroup's
Bonnington House, Sovereign House, Meridian Gate and Oliver's Yard
data centers and Equinix's West Drayton data center in London; TelecityGroup's Science Park and
Amstel Business Park I in Amsterdam; and TelecityGroup's Lyonerstrasse
data center in Frankfurt. In
the nine months from January-September
2015, these assets contributed approximately four percent of
the combined TelecityGroup and Equinix revenues for that
period.
- Given the requirements for these divestitures, Equinix expects
this transaction to be adjusted funds from operations (AFFO) per
share accretive to Equinix twelve months from closing.
- Equinix's acquisition of Telecity complements and enhances the
company's existing portfolio and provides the opportunity to
increase network and cloud density to better serve enterprise
customers who are increasingly moving to highly interconnected,
global data centers. Upon close, the combined company will
operate a total of 145 data centers around the world.
Quotes
- Steve Smith, president and
CEO, Equinix:
"We are pleased to have received
clearance from the European Commission for the acquisition of
Telecity. The combination of Telecity and Equinix is a milestone in
the ongoing development of our platform and will bring the benefits
of greater cloud and network density to our customers in
Europe and beyond."
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.
Important Notices
This press release contains forward-looking statements that
involve risks and uncertainties. Forward-looking statements include
statements regarding Equinix's ability to complete the acquisition
of Telecity, the expected timetable for the acquisition, the
expected benefits from the acquisition, the expected divestiture of
certain facilities, and the expected financial performance of the
combined company following the acquisition. 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 occurrence
of any event, change or other circumstance that would compromise
Equinix's ability to complete the acquisition of Telecity within
the expected timeframe or at all; unanticipated costs or
difficulties relating to the integration of companies Equinix has
acquired or will acquire into Equinix, including Telecity;
the challenges of acquiring, operating and constructing IBX
centers and developing, deploying and delivering Equinix services;
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.
There can be no assurances as to the amount of proceeds that
Equinix will receive in connection with the expected
divestiture. 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.
Each of the Equinix, Inc. directors accept responsibility for
the information contained in this announcement. To the best of the
knowledge and belief of each of the Equinix, Inc. directors (who
have taken all reasonable care to ensure that such is the case),
the information contained in this announcement for which they are
responsible is in accordance with the facts and does not omit
anything likely to affect the import of that information.
This announcement is not intended to and does not constitute
or form part of any offer to sell or subscribe for or any
invitation to purchase or subscribe for any securities or the
solicitation of any vote or approval in any jurisdiction pursuant
to the transaction or otherwise nor will there be any sale,
issuance or transfer of securities in any jurisdiction in
contravention of applicable laws. The offer will be
implemented solely pursuant to the terms of the scheme document to
be published by Telecity, which will contain the full terms and
conditions of the transaction, including details of how to vote in
respect of the transaction. Any decision in respect of, or
other response to, the offer should be made only on the basis of
the information contained in the scheme document.
Equinix and IBX are registered trademarks of Equinix, Inc.
International Business Exchange is a trademark of Equinix, Inc.
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SOURCE Equinix, Inc.