Bid would break proposed $2.2bn merger with Interxion
Equinix has made a $3.5bn move for Telecity Group the company has confirmed saying it ‘believes that a potential transaction with TelecityGroup would create a more compelling combination than the proposed merger with Interxion Holding N.V. and would deliver greater value for TelecityGroup shareholders.’
The move is made of 54% cash and 46% Equniix stock.
In a statement Equinix said: "Equinix, Inc. ("Equinix") notes the recent announcement by TelecityGroup plc ("TelecityGroup"). Equinix confirms that it is in preliminary discussions with the Board of TelecityGroup regarding a possible cash and share offer for TelecityGroup."
The Board of Equinix believes that this opportunity represents attractive shareholder value creation potential for Equinix, complementing and extending Equinix’s geographic footprint in Europe and enabling increased network and cloud density to better serve customers.
"In the United Kingdom, the acquisition of TelecityGroup would add capacity in Central London and Docklands that would complement the focus of Equinix’s current operations in Slough. Additionally, the acquisition would add capacity in several of Equinix’s current locations throughout Europe, and extend Equinix’s footprint into new locations with identified cloud and interconnection needs including Dublin, Helsinki, Istanbul, Milan, Stockholm and Warsaw."
In February Telecity Group announced its bid for Interxion proposing a $2.2bn merger