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Wheelings & Dealings: Equinix Buys UK Data Center Peer

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Wheelings & Dealings: Equinix Buys UK Data Center Peer

 
May 28, 2015

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  By Paula Bernier, Executive Editor, TMC
 


Data center giant Equinix (News - Alert) is getting bigger.


The U.S. company yesterday revealed it plans to buy U.K. data center company Telecity Group Plc for $3.6 billion.

The offer, which is expected to close in the first half of next year, is composed half of stock and half of cash. That represents a 35 percent premium to TelecityGroup’s Feb. 10 price and a 27 percent premium to its price as of May 6, according to Equinix. Following the close of the deal, TelecityGroup shareholders will hold about 10 percent of the company.

The deal complements and extends the Equinix footprint in Europe, makes its network denser, creates opportunities for cross-selling, better positions the company to address global data center demands, and will increase shareholder value, the company explains. It will offer Equinix new capacity in Amsterdam, Frankfurt, London and Paris; offer additional cloud services and increase interconnection in Dublin, Helsinki, Manchester, Milan, and Stockholm; and provide a launch pad for future growth in markets such as Istanbul, Sofia, and Warsaw.

Image via Shutterstock

"We are delighted to announce the combination of TelecityGroup and Equinix in what is an exciting day for the stakeholders of both companies,” Stephen Smith, CEO and president of Equinix, said. “The addition of TelecityGroup's businesses will considerably strengthen Equinix's offering to customers in Europe and beyond, reinforcing us as a global leader in global interconnection and data centers, as well as bringing the benefits of greater cloud and network density to our customers.”

Equinix today serves more than 6,300 customers around the world from 105 data centers in 33 metropolitan areas. TelecityGroup, meanwhile, has 39 data centers in 12 European metro areas.

The New York Times reports that Equinix won TelecityGroup over Europe’s Interxion (News - Alert) Holding, which had aimed to buy the company with an all-share offer.




Edited by Stefania Viscusi
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