REDWOOD CITY, Calif. and
LONDON, July 5, 2016 /PRNewswire/ -- Equinix, Inc.
(Nasdaq: EQIX), the global interconnection and data center company,
today announced that it has closed the transaction for the sale of
eight European data center assets to Digital Realty Trust, Inc.
(NYSE: DLR) for approximately $874
million. The sale of these data center assets was required
by the European Commission as part of its approval of Equinix's
purchase of TelecityGroup plc, which closed in January 2016.
Additionally, Equinix and Digital Realty entered into an
agreement for the purchase by Equinix for EUR €189,750,000
(approximately USD $211 million) of
Digital Realty's operating business in St. Denis, Paris, including its real estate and data
center facility, which currently houses Equinix's PA2 and PA3
International Business Exchange™ (IBX®) data centers. The
Paris acquisition is subject to
certain customary formalities, and is expected to close in Q3 of
2016.
RBC Capital Markets served as Equinix's financial advisor, and
Slaughter and May acted as Equinix's lead external legal advisors
in connection with these transactions.
Highlights / Key Facts
- In January 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 doubled Equinix's capacity in
Europe, fortifying its position as
the largest retail colocation provider in the region and in the
world.
- The divesture of eight European assets to Digital Realty Trust
to meet the European Commission's requirements in the purchase of
TelecityGroup include 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.
- As the result of the Telecity acquisition Equinix added seven
new markets in Europe to its
portfolio including Dublin,
Helsinki, Istanbul, Manchester, Sofia, Stockholm, and Warsaw. Equinix now operates 145 IBX data
center facilities in 40 markets, providing customers even more ways
to connect with other businesses around the world on Platform
Equinix™.
Quotes
- Steve Smith, president and
CEO, Equinix:
"Equinix's acquisition of TelecityGroup added critical network
and cloud density to better serve our global customers. Completing
this last milestone in the acquisition process paves the way for us
to focus fully on helping our enterprise customers leverage our
highly interconnected, global data centers for accelerated business
performance and innovation. Additionally, the purchase of the
Paris facilities is an important
step in managing our real estate portfolio and ensuring we have the
ability to add more capacity in this key market in the
future."
Additional Resources
- Equinix Agrees to Divest Eight European Assets to Digital
Realty Trust, Inc. [press release]
- European Commission Grants Clearance for Equinix Offer to
Acquire Telecity [press release]
- Equinix Expands Data Center Leadership Position with Close of
Telecity Acquisition [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 divesture of certain Equinix
and Telecity assets to Digital Realty and statements related to the
purchase of 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 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