8-KOther Events

EQUINIX INC 8-K Report, Corporate Update (Jan 6, 2010)

Filed January 6, 2010For Securities:EQIX

Summary

Equinix, Inc. (EQIX) filed an 8-K on January 6, 2010, to report a significant development in its proposed merger with Switch and Data Facilities Company, Inc. The company announced that it received a "second request" from the Antitrust Division of the Department of Justice (DOJ) concerning the merger review. This request extends the waiting period under the Hart-Scott-Rodino (HSR) Antitrust Improvement Act, indicating a more in-depth antitrust examination is underway. As a result of this second request, Equinix now anticipates that the merger, which was previously expected to close earlier, will likely be completed in the second quarter of 2010. The transaction remains contingent on customary closing conditions, including stockholder and regulatory approvals. Investors should note that this development signifies potential regulatory hurdles and pushes out the expected closing timeline for this significant acquisition.

Key Highlights

  • 1Equinix received a 'second request' from the Department of Justice Antitrust Division for additional information regarding the proposed merger with Switch and Data.
  • 2The 'second request' extends the waiting period under the Hart-Scott-Rodino (HSR) Antitrust Improvement Act.
  • 3The merger's expected closing date has been revised to the second quarter of 2010, a delay from previous expectations.
  • 4Equinix intends to respond promptly to the DOJ's request.
  • 5Completion of the merger is still subject to stockholder and regulatory approvals, as well as other closing conditions.
  • 6Switch and Data stockholders are scheduled to vote on the merger on January 29, 2010.

Frequently Asked Questions

A 'second request' is a formal request for additional information and documents issued by the Antitrust Division of the Department of Justice (DOJ) during its review of a merger under the Hart-Scott-Rodino (HSR) Antitrust Improvement Act. It signifies that the DOJ is conducting a more thorough investigation into the competitive effects of the proposed transaction.

The 'second request' extends the HSR waiting period. The waiting period will now remain in effect until 30 days after Equinix has substantially complied with the request, unless modified. Consequently, Equinix now expects the merger to close in the second quarter of 2010, a delay from previous estimates.

The completion of the merger is still subject to several conditions, including approval from the stockholders of both Equinix and Switch and Data, as well as regulatory approval. Other standard closing conditions specified in the merger agreement must also be satisfied or waived.

Investors, particularly Switch and Data stockholders, are urged to read the registration statement on Form S-4, which includes a proxy statement/prospectus, filed with the SEC. These documents, along with other SEC filings, can be accessed through the SEC's website (www.sec.gov) or obtained directly from Equinix or Switch and Data Investor Relations.