Equinix has agreed to acquire TelecityGroup. This is a deal worth $3.6 billion. The transaction for the deal was submitted yesterday and the following are the items included in the deal:
The transaction has a value of approximately 1,145.0 pence per TelecityGroup Share and a value of approximately £2,351.9 million for TelecityGroup’s entire issued and to be issued share capital according to the volume-weighted average share price of $267.74 per Equinix Share for the 5 day period to 28 May 2015.This is being the last Business Day before the date of this Announcement as well as the exchange rate on 28 May 2015 of 1.5283.
And according to the value of approximately 1,145.0 pence per TelecityGroup Share, the terms of the acquisition represent a premium of about 34.9 per cent. This is from the Closing Price of 848.5 pence per TelecityGroup Share on 10 February 2015 and this being the last Business Day before TelecityGroup announced its merger with Interxion.
Along with the terms of the deal, a premium of approximately 56.5 per cent to the volume-weighted average share price of 731.8 pence per TelecityGroup Share. This is for the 12-month period to 10 February 2015. This again being the last Business Day before TelecityGroup announced its proposed deal with Interxion and a premium of about 27.3 per cent to the Closing Price of 899.5 pence per TelecityGroup Share on 6 May 2015. This date being the last Business Day before TelecityGroup announced that the company is interested in creating a deal with Equinix.
The current value of the transaction according to Equinix’s Closing Price of $269.19 on 28 May 2015, being the last Business Day before the merger was announced, and an exchange rate on 28 May 2015 of 1.5283 is 1,148.5 pence per TelecityGroup Share.
After the completion of the Transaction, TelecityGroup Shareholders will now own approximately 10.1 per cent. John Hughes, Executive Chairman of the Board of TelecityGroup, will become a part of the Board of Equinix. TelecityGroup directors, which were advised by Goldman Sachs International and Oakley Capital Limited on the terms of the Transaction, consider the terms fair and reasonable. The directors of TelecityGroup unanimously recommend that TelecityGroup Shareholders vote according to the Scheme at the Court Meeting and the resolutions of the Transaction at the TelecityGroup General Meeting.
TelecityGroup directors have irrevocably undertaken their own beneficial holdings of 128,318 TelecityGroup Shares in aggregate which is approximately 0.0632 per cent of TelecityGroup’s issued share capital on 28 May 2015 which is the last Business Day before this Announcement.
Regarding the outcome of the transaction, the Board of Equinix believes that this will deliver incredible value for the shareholders of both TelecityGroup and Equinix. The Board of Equinix also believes that the premium offered, which includes a significant cash component and the opportunity for TelecityGroup Shareholders to be able to join in combined value creation through the transaction’s equity component is a huge opportunity for TelecityGroup Shareholders.
On the other hand, the Board of Equinix believes that acquisition will pave the way for improved network and cloud density so that the combined company will be able to better serve its customers. The combined company will create a stronger platform to attract more customers and pursue the huge opportunity in the industry. Equinix also expects that the deal will enable reaccelerated deployment of cloud service provider nodes and to further improve the services of Equinix’s cloud ecosystem strategy. More information about the acquisition will be announced on a later date.
About Equinix
Equinix, Inc. is an American public corporation that offers carrier-neutral data centers and internet exchanges. The company provides network-neutral data centers (IBX or “International Business Exchange”) as well as interconnection services. Some of the most popular services that the company offers are collocation, traffic exchange and outsourced IT infrastructure solutions which are important to enterprises, content companies, systems integrators and over 1,000+ network service providers worldwide.
Equinix data centers is the source of more than 500 cloud service providers and this helps make the Equinix Cloud Exchange come to life. This is a service through proprietary software that amazingly helps users to connect to simultaneously connect to multiple clouds. Equinix stock market evolution http://www.marketwatch.com/investing/stock/eqix.
About Telecity Group
Telecity Group plc was formerly known as TelecityRedbus and before that Telecity. This company is a European carrier-neutral datacentre and colocation centre provider. Telecity focuses on the design, build and management of highly connected, resilient and secure environments where customers can house their telecoms, internet and IT infrastructure. Telecity is listed on the London Stock Exchange and is a part of the FTSE 250, FTSE techMARK 100 and FTSE4Good indices. Telecity Group stock market evolution: http://www.bloomberg.com/quote/TCY:LN .
