Friday, May 29, 2015

Equinix Bids $3.6 Billion for TelecityGroup

Equinix is bidding to acquire TelecityGroup for £11.45 per share, 35% premium to the closing price of February 10, 2015, and representing an equity value of $3.6 billion.  The offer is composed of 50% stock and 50% cash.

Equinix said the merger would complement and extend its geographic footprint in Europe.

TelecityGroup operates 39 data centers with 1.2 million gross square feet of capacity in 12 metros across Europe. The business serves approximately 2,500 customers and generates about $574 million in annual revenue.

Equinix operates 105 data centers with 11 million gross square feet of capacity across 33 metros worldwide. Equinix serves approximately 6,300 customers and generates approximately $2.5 billion in annual revenue, of which about $650 million is from European operations.

The Boards of Equinix and TelecityGroup have reached agreement on the terms of the recommended cash and share offer.

In February 2015, TelecityGroup plc and Interxion, both leading operators of data centers across Europe, announced plans for a merger. 

Under the deal, Interxion shareholders would receive 2.3386 new TelecityGroup shares per Interxion share. As a result, Interxion shareholders would own approximately 45%, and TelecityGroup shareholders approximately 55%, of the combined group. The primary listing for the combined group would be in London with a New York Stock Exchange listing for TelecityGroup’s existing ADR programme.

TelecityGroup, headquartered in the United Kingdom, operates 39 data centers in key European cities. It has annual turnover of £349 million.

Interxion, which is based in Amsterdam, operates 39 data centres across 11 countries.  It has annual turnover of £274 millio

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