Equinix to buy Telecity for £2.35 billion

Equinix to buy Telecity for £2.35 billion

Equinix has today revealed that it is to acquire UK-based Telecity Group for £2.35 billion.

The combination of Equinix and Telecity will create Europe’s largest data centre player, and the announcement ends discussions with Interxion, which Telecity was looking to purchase for £438 million earlier this year.

The deal will provide US-based Equinix with an enhanced European footprint, and Stephen Smith, president and chief executive at Equinix, said that the addition of Telecity would reinforce Equinix’s position as a leader in the global interconnection and data centre space.

“The transaction will allow Equinix to benefit from increased scale, and extend the global reach of our platform,” Smith said.

Under terms of the agreement, Telecity executive chairman John Hughes will join the Equinix board, and Telecity shareholders will hold 10.1% of the combined company.

“Having carefully considered all our options, the board believes this [the deal with Equinix] is a compelling offer and an excellent outcome for shareholders, employees and customers,” said Hughes.

“Through this transaction, our customers will have new global opportunities for their connected data centre requirements. The combination of Equinix and Telecity services and people will ensure the expanded business leads the way in the provision of highly-connected data centre services for customers in Europe and all over the world.”

The deal is due to complete in Q1 2016.