Fri, May 29, 3:30 AM
- Creating the largest data center player in Europe, Equinix (NASDAQ:EQIX) has agreed to buy U.K. firm Telecity Group (OTCPK:TLEIY) in a deal worth £2.35B ($3.6B).
- Equinix said the deal would see each Telecity Group shareholder receive 572.5 pence in cash for each share, a 27.3% premium to the firm's closing price on May 6 before talks were announced, as well as 0.0327 new Equinix shares.
- Previously: Reuters: Equinix closes in on Telecity deal (May. 28 2015)
Thu, May 28, 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.
Thu, May 7, 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)
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