REDWOOD CITY, Calif. and
LONDON, May
16, 2016 /PRNewswire/ -- Equinix, Inc. (Nasdaq:
EQIX), the global interconnection and data center company, today
announced that it has reached an agreement to divest eight assets
in its European business to Digital Realty Trust, Inc. (NYSE: DLR)
for the amount of $874.4 million. As
a condition of obtaining clearance from the European Commission in
November 2015 for Equinix's
acquisition of TelecityGroup plc, Equinix selected and 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.
The agreement is subject to certain customary closing
conditions, including approval by the European Commission, as well
as completion of the works council consultation process in
the Netherlands. Upon approval by
the European Commission, and satisfaction of the other conditions,
the transaction is expected to close in Q3.
Additionally, Equinix has separately negotiated with Digital
Realty a binding option for Equinix to acquire Digital Realty's
operating business including its real estate and facility in St.
Denis, Paris where Equinix has an
established presence with its PA2 and PA3 International Business
Exchange™ (IBX®) data centers. The acquisition is subject to
certain conditions, including confirmatory due diligence by
Equinix, any mandatory governmental or local authority approvals,
and any required employee consultation processes. The acquisition
is expected to complete in the second half of 2016.
Highlights / Key Facts
- On January 15, 2016, Equinix
completed the acquisition of TelecityGroup plc in a transaction
valued at approximately $3.8 billion
(£2.6 billion). The addition of TelecityGroup's 34+ data centers,
net of the divestment, more than doubles Equinix's capacity in
Europe, fortifying its position as
the largest retail colocation provider in the region and in the
world.
- The acquisition of TelecityGroup adds 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.
- In addition, Equinix has added seven new markets in
Europe to its portfolio, providing
customers even more ways to connect with other businesses around
the world on Platform Equinix™. Resulting from the market
additions, Equinix now operates 145 data center facilities, net of
the divestment, in 40 markets, including the additions of
Dublin, Helsinki, Istanbul, Manchester, Sofia, Stockholm, and Warsaw.
- The option agreement for Equinix to acquire the operating
business and facility in St. Denis, Paris where Equinix has an established
presence and a strong customer base furthers its commitment to the
Paris and European markets and its
corporate strategy of owning the underlying real estate on which
Equinix operates its large data center campuses.
Quotes
- Steve Smith, president and
CEO, Equinix:
"We are pleased to reach this divestiture milestone to
satisfy the European Commission requirements, as agreed to with our
purchase of TelecityGroup. Additionally, our proposed purchase of
the Paris land and business assets
from Digital Realty is a key step in our strategy to invest behind
our customers and ecosystems in locations where we have sizable
campuses – this includes Paris. Both of these deals today enable us to
focus on increased growth of the Equinix portfolio. With increased
interconnection in Europe, Equinix
continues to build on its global market leadership, creating new
opportunities to grow business ecosystems around the
world."
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, statements related to the agreement to divest certain
Equinix and Telecity assets to Digital Realty and statements
related to the option to purchase land and business assets from
Digital Realty in Paris. Factors
that might cause such differences include, but are not limited to,
a failure to fulfill the closing conditions to the agreement with
Digital Realty to divest the Equinix and Telecity assets; a failure
to exercise the option to purchase land and business assets from
Digital Realty in Paris;
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.
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.