Equinix's global interconnection platform now reaches 40
metros including seven new metros in Europe
REDWOOD CITY, California and
LONDON, Jan. 15, 2016 /PRNewswire/ -- Equinix, Inc.
(Nasdaq: EQIX), the global interconnection and data center company,
today announced that it has completed the acquisition of
TelecityGroup plc in a transaction valued at approximately
$3.8 billion (£2.6 billion). The
addition of TelecityGroup's 40+ data centers more than doubles
Equinix's capacity in Europe,
fortifying its position as the largest retail colocation provider
in the region. The acquisition expands the company's
interconnection platform in key European markets while also adding
critical network and cloud density to better serve enterprise
customers who see interconnection as a core IT design principle and
are increasingly moving to highly interconnected, global data
centers for accelerated business performance and innovation.
Photo - http://photos.prnewswire.com/prnh/20160115/322578
In order to meet changing business needs, global enterprises
continue to outsource IT, but increasingly require connectivity to
service providers and business partners in multiple markets – a key
benefit of Equinix's global interconnection platform. Today, 54
percent of Equinix's revenue comes from customers deployed globally
across all three of its regions (Americas, APAC and EMEA), and over
83 percent of revenue is from customers deployed across multiple
metros, a reflection of the company's differentiated scale and
global reach. With new data centers and increased interconnection
in Europe, Equinix builds on its
global market leadership, and creates new opportunities to grow
business ecosystems around the world.
Highlights / Key Facts
- The acquisition of Telecity enhances Equinix's existing data
center portfolio by adding seven new markets in Europe and provides customers even more ways
to connect with other businesses around the world on Platform
Equinix™. Equinix will add data center facilities in
Bulgaria, Finland, Ireland, Italy, Poland, Sweden and Turkey.
- Through the acquisition, Telecity brings more than 1,000 net
new customers to Equinix, including more than 200 network and
mobility companies and more than 300 cloud and IT services
companies. This further strengthens the business ecosystems found
inside of Equinix International Business Exchange IBX® data centers
and provides customers with the broadest choice of service
providers for IT and multi-cloud deployments to accelerate business
performance.
- Equinix has made three acquisitions in the last twelve months
including professional services company Nimbo in the U.S. in
January 2015 and Bit-isle in
Japan in November 2015. The Telecity and Bit-isle
acquisitions significantly expand Equinix's global platform (after
planned divestitures) from 105 data centers in 33 metros to 145 in
40 metros.
- Originally announced in May as a recommended cash and share
offer, the transaction was approved earlier this week by Telecity
shareholders and the scheme of arrangement used to implement the
acquisition was approved by the applicable court in the
United Kingdom, both steps
required for closing the transaction.
- The transaction was comprised of a cash payment of
approximately $1.7 billion and the
issuance of approximately 6.8 million shares of Equinix common
stock valued at approximately $2.1
billion based on the closing price of Equinix common stock
as of January 14, 2016. This amount
excludes any value attributed to the Telecity employee equity
awards assumed, which will be finalized at a later date.
- Telecity's Chairman, John
Hughes, will be joining the Board of Directors of Equinix,
Inc., and Equinix's EMEA President, Eric
Schwartz, will serve as the head of the combined regional
business in EMEA.
- Equinix will further discuss the financial results of the
Telecity and Bit-isle acquisitions during its regularly planned Q4
earnings call in February 2016.
Quotes
- Steve Smith, president and
CEO, Equinix:
"Today is a very important day for Equinix as we close the
acquisition of Telecity, which is a significant milestone in our
17-year history. By increasing the scale of the Equinix
interconnection platform in key markets throughout Europe, we are able to better serve global
enterprises while creating meaningful shareholder value."
- John Hughes, outgoing
executive chairman, TelecityGroup, and board member,
Equinix:
"The combination of Equinix and Telecity gives businesses
more choice for interconnection, which is increasingly important in
this highly digital age, when customers rely on connectivity to
drive competitive advantage. I would like to take this opportunity
to pay tribute to all the committed, talented employees at Telecity
who together built Europe's
premium data center business and remain committed to the smooth
integration of our two companies. It is with great pleasure that I
will continue to work with the combined business as a member of
Equinix's Board of Directors."
Additional Resources
- Equinix Extends Global Data Center Leadership as Telecity Deal
Goes Final [blog]
- European Commission Grants Clearance for Equinix Offer to
Acquire Telecity [press release]
- Equinix makes Recommended Offer for TelecityGroup [press
release]
- Recommended Cash and Share Offer for Telecity Group PLC by
Equinix, Inc. [press release]
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 40 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.
Forward Looking Statements
This press release contains forward-looking statements which
are based on current expectations, forecasts and assumptions that
involve risks and uncertainties that could cause actual results to
differ materially from expectations discussed in such
forward-looking statements, including statements related to the
acquisition of Telecity and the expected benefits from the
acquisition. Factors that might cause such differences
include, but are not limited to, unanticipated costs or
difficulties relating to the integration of companies we have
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. 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.
Directors' Responsibility
As required under the UK Takeover Code, the directors of
Equinix accept responsibility for the information contained in this
document. To the best of the knowledge and belief of those
directors (who have taken all reasonable care to ensure that such
is the case), the information contained in this document is in
accordance with the facts and does not omit anything likely to
affect the import of such information.
Equinix and IBX are registered trademarks of Equinix, Inc.
International Business Exchange is a trademark of Equinix,
Inc.