Summary
Equinix, Inc. (EQIX) announced on June 27, 2007, its agreement to acquire IXEurope Plc for approximately £240.9 million in cash. This strategic move aims to expand Equinix's global footprint by acquiring a significant European data center operator. The acquisition is structured as a recommended scheme of arrangement, requiring shareholder and court approvals, with an expected completion by mid-September 2007. The company has secured a $500 million senior bridge loan facility from Citigroup, N.A. to finance this acquisition, with plans to arrange permanent financing later. Key IXEurope management, including its co-founders, have committed to remaining with the company post-acquisition and will receive stock awards. This acquisition represents a significant step in Equinix's international growth strategy, strengthening its presence in the European market.
Key Highlights
- 1Equinix to acquire IXEurope Plc for approximately £240.9 million.
- 2Acquisition will be implemented through a scheme of arrangement, subject to shareholder and court approvals.
- 3Financing for the acquisition will be provided by a $500 million senior bridge loan facility from Citigroup.
- 4IXEurope's co-founders and key employees are expected to remain with the company post-acquisition.
- 5The transaction is anticipated to close by mid-September 2007.
- 6Equinix has received irrevocable undertakings from IXEurope shareholders representing 66.5% of the issued share capital.
- 7Equinix intends to secure permanent financing to replace the bridge loan.