Equinix completed its acquisition of Telecity Group on January 15, 2016, making Telecity a wholly owned subsidiary. The cash-and-stock deal was valued by Equinix at about $3.8 billion (£2.6 billion). It expanded Equinix’s European data-center footprint, while European Commission approval required eight facilities to be sold to Digital Realty.
When did Equinix acquire Telecity?
Equinix completed the acquisition on January 15, 2016. Telecity Group plc became a wholly owned Equinix subsidiary. The European Commission had cleared the transaction with conditions on November 13, 2015.
How much did Equinix pay?
Equinix described the completed transaction as worth approximately $3.8 billion (£2.6 billion). Its closing consideration comprised about $1.7 billion in cash and 6.8 million Equinix shares valued at approximately $2.1 billion, according to the company’s 2016 Form 8-K.
The offer Equinix announced on May 29, 2015, was structured as 572.5 pence in cash plus 0.0327 Equinix shares for each Telecity share. At announcement, Equinix indicated an equity value of about £2,351.9 million. That announced equity value and the later reported closing consideration describe different stages and measures of the deal.
Why did Equinix buy Telecity?
The acquisition extended Equinix’s interconnection platform across Europe, adding more than 40 data centers and increasing its European capacity by more than twofold, Equinix said at closing. It also added seven new European metros and increased the network and cloud density available to enterprises using interconnected global data centers.
Markets identified in Equinix’s 2016 Form 10-Q included Dublin, Helsinki, Istanbul, Manchester, Milan, Sofia, Stockholm and Warsaw. This list identifies added metro markets in the filing; it does not mean every named metro was among the seven Equinix described in its closing announcement.
Which Telecity data centers were sold to Digital Realty?
As a condition of European Commission clearance, Equinix had to divest eight data-center assets to address overlaps in London, Amsterdam and Frankfurt. Equinix announced on July 5, 2016, that it had completed their sale to Digital Realty for approximately $874 million. The transaction therefore expanded Equinix’s European presence while transferring specified overlapping facilities to a rival operator.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.How the deal unfolded
| Date | Event |
|---|---|
| May 29, 2015 | Equinix announced a recommended cash-and-share offer for Telecity: 572.5 pence plus 0.0327 Equinix shares per Telecity share, with an indicated equity value of about £2,351.9 million. |
| November 13, 2015 | The European Commission cleared the transaction subject to commitments requiring divestitures. |
| January 15, 2016 | Equinix completed the acquisition; Telecity became wholly owned by Equinix. |
| July 5, 2016 | Equinix completed the sale of eight European data-center assets to Digital Realty for approximately $874 million. |
Equinix’s filings establish the deal’s consideration, strategic footprint expansion and divestitures. They do not provide a single attributable post-close synergy, revenue increase or customer-count figure specifically caused by the Telecity acquisition.
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