Summary
Equinix, Inc. (EQIX) announced the successful completion of its acquisition of Telecity Group plc on January 15, 2016. This significant transaction, valued at approximately $3.8 billion in total consideration (comprising $1.7 billion in cash and $2.1 billion in Equinix common stock), marks a substantial expansion for Equinix by bringing Telecity under its full ownership. This move is expected to strengthen Equinix's global footprint and market position in the data center industry. In conjunction with the acquisition, Equinix also announced the election of John Hughes, former Executive Chairman of Telecity, to its Board of Directors, effective January 15, 2016. Mr. Hughes's appointment brings additional expertise to Equinix's leadership, and his transition includes a separation payment and a replacement equity award from Equinix. The issuance of Equinix shares to Telecity shareholders was conducted under a securities exemption, and further details on employee equity award adjustments will be finalized later.
Key Highlights
- 1Equinix has completed the acquisition of Telecity Group plc, making Telecity a wholly-owned subsidiary.
- 2The total transaction value is approximately $3.8 billion, consisting of $1.7 billion in cash and $2.1 billion in Equinix common stock.
- 3Approximately 6.8 million shares of Equinix common stock were issued as part of the acquisition consideration.
- 4The acquisition significantly expands Equinix's global reach and market presence.
- 5John Hughes, formerly Executive Chairman of Telecity, has been appointed to Equinix's Board of Directors.
- 6The issuance of Equinix shares is being made under the Section 3(a)(10) exemption of the Securities Act of 1933.
- 7John Hughes is entitled to a separation payment and a replacement equity award from Equinix.