8-KMaterial AgreementsFinancial EventsExhibits & Filings

EQUINIX INC 8-K Report, Material Agreement (Jun 28, 2007)

Filed June 28, 2007For Securities:EQIX

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.

Frequently Asked Questions

This filing reports on Equinix's entry into a material definitive agreement to acquire IXEurope Plc and the establishment of a $500 million senior bridge loan facility to finance the acquisition.

Equinix is financing the acquisition through a $500 million senior bridge loan facility provided by Citigroup, N.A. The company also intends to secure permanent financing to replace this bridge loan.

The acquisition requires approval from a majority of IXEurope shareholders representing at least three-fourths of the value of shares present and voting at a UK High Court meeting, sanction from the Court, receipt of required regulatory approvals, and that IXEurope has not experienced certain adverse business developments.

The scheme document is expected to be posted by July 26, 2007, and the acquisition is anticipated to be effective by mid-September 2007, subject to the satisfaction of all conditions.