Equinix completes $874m sale of European assets to Digital Realty

Equinix completes $874m sale of European assets to Digital Realty

Equinix has completed the sale of eight European data centres assets to Digital Realty Trust for $874 million as part of its move to acquire Telecity Group

The deal is part of a divestment that Equinix undertook as a condition requested by the European Commission in its $3.8 billion acquisition of Telecity.

"Equinix's acquisition of TelecityGroup added critical network and cloud density to better serve our global customers. Completing this last milestone in the acquisition process paves the way for us to focus fully on helping our enterprise customers leverage our highly interconnected, global data centers for accelerated business performance and innovation,” said Steve Smith, president and CEO of Equinix. 

“Additionally, the purchase of the Paris facilities is an important step in managing our real estate portfolio and ensuring we have the ability to add more capacity in this key market in the future."

The divesture of eight European assets to Digital Realty in the purchase of Telecity were: TelecityGroup's Bonnington House, Sovereign House, Meridian Gate and Oliver's Yard data centers and Equinix's West Drayton data center in London; TelecityGroup's Science Park and Amstel Business Park I in Amsterdam; and TelecityGroup's Lyonerstrasse data center in Frankfurt.

Additionally Equinix has also agreed to buy Digital Realty’s operating business in St Denis, Paris, as well as its real estate and data centre, for $211 million. The acquisition, subject to customary formalities, is expected to be completed in Q3 2016.

Equinix completed the acquisition of Telecity in a deal valued at $3.8 billion. The acquisition of Telecity’s 34 data centres more than doubled Equinix’s capacity in Europe and added seven new markets in the region to its portfolio, including Dublin, Helsinki, Istanbul, Manchester, Sofia, Stockholm, and Warsaw.