Global interconnection and colocation data center company, Equinix (Nasdaq: EQIX), has completed the acquisition of TelecityGroup in a transaction valued at approximately $3.8 billion (£2.6 billion). The addition of TelecityGroup’s 40+ data centers more than doubles Equinix’s capacity in Europe.
The TelecityGroup acquisition expands Equinix‘s interconnection platform in key European markets while also adding critical network and cloud density to better serve enterprise customers.
The acquisition of TelecityGroup would enhance Equinix’s existing data center portfolio by adding seven new markets in Europe and provide customers even more ways to connect with other businesses around the world on Platform Equinix. Through the acquisition, Equinix will add data center facilities in Bulgaria, Finland, Ireland, Italy, Poland, Sweden and Turkey.
TelecityGroup also brings more than 1,000 net new customers to Equinix, including more than 200 network and mobility companies and more than 300 cloud and IT services companies. This would further strengthen the business ecosystems found inside of Equinix International Business Exchange (IBX) data centers.
145 Data Centers
Equinix has made three acquisitions in the last twelve months including professional services company Nimbo in the U.S. in January 2015 and Bit-isle in Japan in November 2015. The TelecityGroup and Bit-isle acquisitions significantly expand Equinix’s global platform (after planned divestitures) from 105 data centers in 33 metros to 145 in 40 metros.
Originally announced in May 2015 as a recommended cash and share offer, the transaction was approved earlier this week by TelecityGroup shareholders. The transaction was comprised of a cash payment of approximately $1.7 billion and the issuance of approximately 6.8 million shares of Equinix common stock valued at approximately $2.1 billion based on the closing price of Equinix common stock as of January 14, 2016.
TelecityGroup’s Chairman, John Hughes, will be joining the Board of Directors of Equinix, while Equinix‘s EMEA President, Eric Schwartz, will serve as the head of the combined regional business in EMEA.