Summary
Equinix, Inc. (EQIX) has filed an 8-K report detailing the divestment of certain data center facilities acquired as part of its earlier acquisition of Telecity Group plc. To satisfy European Commission regulatory requirements for the Telecity acquisition, Equinix has entered into agreements to sell these specific assets in Amsterdam, Frankfurt, and London to Digital Realty Trust, Inc. for approximately $874.4 million. This divestment is a crucial step in realizing the full benefits of the Telecity integration. The transaction is anticipated to close in the third quarter of 2016, subject to customary closing conditions, including final approval from the European Commission and completion of necessary consultation processes. While Digital Realty is a current landlord and has other business relationships with Equinix, this sale represents a significant partial monetization of the acquired Telecity assets, impacting Equinix's footprint in these key European markets.
Key Highlights
- 1Equinix is selling the Divestment Businesses (Amsterdam, Frankfurt, London data centers) acquired from Telecity Group plc.
- 2The sale is a condition for European Commission approval of the Telecity acquisition.
- 3The buyer is Digital Realty Trust, Inc., for a total consideration of approximately $874.4 million.
- 4The divestment is expected to close in the third quarter of 2016.
- 5Closing is subject to European Commission approval and Dutch works council consultation.
- 6Digital Realty has existing landlord and joint venture relationships with Equinix.
- 7This move helps Equinix satisfy regulatory hurdles while integrating the Telecity acquisition.