InterXion Holding N.V.NYSE
InterXion Is Making Its Move - How Much Farther Can It Go?
Alpha Gen Capital
Alpha Gen Capital
InterXion: Deal With Telecity Will Create New Powerhouse
Alpha Gen Capital
Alpha Gen Capital
Fri, Oct. 28, 1:40 PM
- CenturyLink (CTL -1.4%) is giving back some of yesterday's merger-chatter gains, but Level 3 Communications (NASDAQ:LVLT) is adding on, up another 3.9% today.
- Level 3 jumped 10.6% yesterday, and CenturyLink rose 10%, on a report that the two were in advanced talks to merge.
- Level 3's at $53.90 today (after closing at $46.92 on Wednesday), and it's looking for at least $60/share in a buyout and $65 "could be reasonable," says Raymond James, which cut CenturyLink to Market Perform from Outperform -- thinking that stock could trade sideways for the months it could take to close such a deal.
- UBS sees the deal cresting $1B in synergies, given the companies' overlapping infrastructure. Analyst Batya Levi is assuming an all-stock deal at 9-11 times EBITDA and has CenturyLink at a Buy with a $36 price target (implying 18% upside).
- Oppenheimer's Timothy Horan, meanwhile, sees more of a 50/50 cash/stock split at a $60 valuation for LVLT. He's got CTL at Market Perform but boosts LVLT to Outperform at that $60 target.
- Among peers (and other potential targets) today: CCOI -1.2%, INXN +2%, GTT flat, ZAYO +1.9%, AKAM +0.9%, FTR -2.4%.
Mon, Apr. 4, 1:31 PM
- Shares in InterXion (INXN -1.2%) took a midday dip amid reports that talks with Digital Realty Trust (DLR -0.7%), said to be considering a buyout, have stalled out over price.
- Management is less eager to sell since Baker Capital distributed its shares, a source told CTFN. When Baker controlled InterXion, it had come to a sale agreement with Telecity Group, though that deal didn't come to fruition after Equinix swooped in to buy Telecity and create a European data-center giant.
- So consolidation pressures are still out there. InterXion is going to find a buyer "at some point," one source says, but managers are focused on building solid business for now.
- Now read InterXion Is Making Its Move - How Much Farther Can It Go? »
Thu, Jan. 28, 3:12 PM
- InterXion (NYSE:INXN) has jumped 3.4% in the last few minutes on chatter from Dealreporter about Digital Realty Trust (DLR +3.2%) considering an offer.
- The European data-center player was set to be acquired for $2.2B by Telecity (OTCPK:TLEIY) last spring, before Equinix's own deal for Telecity blew up that deal.
- In November, InterXion expanded its data-center phases in four northern European cities.
- Previously: InterXion expanding data centers in four northern Europe cities (Nov. 03 2015)
- Previously: In merger's wake, InterXion confirms end to its Telecity agreement (May. 29 2015)
- Previously: Telecity's InterXion buy in doubt amid Equinix's $3.5B deal talk (May. 07 2015)
May 29, 2015, 11:05 AM
- As expected, Equinix's (NASDAQ:EQIX) €2.35B deal for Telecity (OTCPK:TLEIY), creating the key player in European data centers, has blown up Telecity's $2.2B deal for InterXion (NYSE:INXN).
- In a statement, InterXion confirmed the companies have terminated their agreement and used the opportunity to reaffirm 2015 guidance for revenues of €375M–€388M, adjusted EBITDA of €162M–€172M and capex of €180M–€200M.
- Analysts expect 2015 revenues of €383.6M and EBITDA of €168.6M.
- The closure of the Equinix-Telecity deal will leave that combination with a 9.03% European market share (by operational square feet) vs. InterXion's 3.5%.
May 28, 2015, 6:30 PM
- American data-center company Equinix (NASDAQ:EQIX) is in the final stages of a deal to acquire UK firm Telecity Group (OTCPK:TLEIY), and it could be announced as early as tomorrow, Reuters is reporting.
- There's no news on deal price, though Equinix had reportedly floated the sum of £2.3B ($3.5B) -- 54% in cash, 46% in stock -- in early negotiations.
- Equinix had to sort out any offer for Telecity by this time next week.
- Speculation about this deal this month has thrown into question Telecity's own existing agreement to acquire InterXion Holding (NYSE:INXN) for $2.2B.
- Of 27M square feet of data-center space in Europe, it's estimated that Equinix has 5.3%, Telecity 3.7% and InterXion 3.5% -- so whichever combination emerges will become a key player in a sector that is bound for more M&A activity.
May 7, 2015, 8:49 AM
- UK-based data-center firm Telecity (OTCPK:TLEIY) says it's beginning talks to be taken over by Equinix (NASDAQ:EQIX) -- which is casting doubt on Telecity's already-agreed $2.2B deal to buy InterXion Holding (NYSE:INXN) from earlier this spring.
- Equinix is up 2.2% in U.S. premarket trading.
- Telecity's all-stock deal with Dutch firm InterXion prohibited either from talking with others, with few exceptions, though Telecity says it believes fiduciary duty requires it to listen to Equinix.
- Equinix's offer would be for $3.5B and be 54% cash and 46% stock and establish the combo as Europe's top player in the industry, leaving InterXion a bit in the lurch. For its part, InterXion says it's committed to its "strategically compelling" deal with Telecity.
- Equinix must decide on an offer for Telecity by June 4.
- Telecity is up 19.4% in London trading.
- Earlier: InterXion Holding beats by €0.01, beats on revenue (May. 07 2015)
Mar. 3, 2015, 9:48 AM
- In taking an 86.7% stake in Germany's e-Shelter, Nippon Telegraph & Telephone (NTT -0.8%) makes itself a key player in Europe's data center industry, jumping into the No. 3 spot in the market.
- E-Shelter is Germany's top operator of data center services, managing 90K square meters of space in Germany, Switzerland and Austria.
- The hotly contested market is growing at 9% a year, according to Gartner.
- For its part, NTT operates more than 130 data centers worldwide.
- The move follows shortly behind a merger of Telecity (OTCPK:TLEIY) with InterXion (NYSE:INXN) to create a leader in that space.