Newspaper article International New York Times

Equinix to Acquire Telecity of Britain for $3.6 Billion ; Deal Will Allow U.S. Firm to Bolster Its European Data Center Business

Newspaper article International New York Times

Equinix to Acquire Telecity of Britain for $3.6 Billion ; Deal Will Allow U.S. Firm to Bolster Its European Data Center Business

Article excerpt

The proposed transaction ends an all-share deal announced in February between Telecity and its European competitor Interxion.

The American data center provider Equinix said on Friday that it had struck a deal to acquire its smaller British rival Telecity Group for about $3.6 billion in cash and stock.

The proposed transaction ends an all-share deal announced in February between Telecity and its European rival Interxion Holding. Equinix, one of the world's biggest providers of data centers, swooped in with a competing offer this month.

Under the terms, Equinix would pay the equivalent of 11.45 pounds, or about $17.55, a share in a combination of cash and shares, a 34.9 percent premium to Telecity's closing price on Feb. 10, the day before its planned alliance with Interxion was announced. The offer values Telecity at Pounds 2.35 billion.

Stephen M. Smith, the Equinix president and chief executive, said in a news release that adding Telecity would "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. …

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