May 16, 2016
REDWOOD CITY, Calif. and LONDON, May 16, 2016 /PRNewswire/ -- Equinix, Inc. (Nasdaq: EQIX), the global interconnection and data center company, today announced that it has reached an agreement to divest eight assets in its European business to Digital Realty Trust, Inc. (NYSE: DLR) for the amount of $874.4 million. As a condition of obtaining clearance from the European Commission in November 2015 for Equinix's acquisition of TelecityGroup plc, Equinix selected and agreed to divest the following facilities: TelecityGroup's Bonnington House, Sovereign House, Meridian Gate and Oliver's Yard data centers and Equinix's West Drayton data center in London; TelecityGroup's Science Park and Amstel Business Park I in Amsterdam; and TelecityGroup's Lyonerstrasse data center in Frankfurt.
The agreement is subject to certain customary closing conditions, including approval by the European Commission, as well as completion of the works council consultation process in the Netherlands. Upon approval by the European Commission, and satisfaction of the other conditions, the transaction is expected to close in Q3.
Additionally, Equinix has separately negotiated with Digital Realty a binding option for Equinix to acquire Digital Realty's operating business including its real estate and facility in St. Denis, Paris where Equinix has an established presence with its PA2 and PA3 International Business Exchange™ (IBX®) data centers. The acquisition is subject to certain conditions, including confirmatory due diligence by Equinix, any mandatory governmental or local authority approvals, and any required employee consultation processes. The acquisition is expected to complete in the second half of 2016.
Highlights / Key Facts
Equinix, Inc. (Nasdaq: EQIX) connects the world's leading businesses to their customers, employees and partners inside the most interconnected data centers. In 40 markets across five continents, Equinix is where companies come together to realize new opportunities and accelerate their business, IT and cloud strategies. www.equinix.com.
Forward Looking Statements
This press release contains forward-looking statements which are based on current expectations, forecasts and assumptions that involve risks and uncertainties that could cause actual results to differ materially from expectations discussed in such forward-looking statements, including statements related to the acquisition of Telecity and the expected benefits from the acquisition, statements related to the agreement to divest certain Equinix and Telecity assets to Digital Realty and statements related to the option to purchase land and business assets from Digital Realty in Paris. Factors that might cause such differences include, but are not limited to, a failure to fulfill the closing conditions to the agreement with Digital Realty to divest the Equinix and Telecity assets; a failure to exercise the option to purchase land and business assets from Digital Realty in Paris; unanticipated costs or difficulties relating to the integration of companies we have acquired or will acquire into Equinix, including Telecity; the challenges of acquiring, operating and constructing IBX centers and developing, deploying and delivering Equinix services; a failure to receive significant revenue from customers in recently built out or acquired data centers; failure to complete any financing arrangements contemplated from time to time; competition from existing and new competitors; the ability to generate sufficient cash flow or otherwise obtain funds to repay new or outstanding indebtedness; the loss or decline in business from our key customers; and other risks described from time to time in Equinix's filings with the Securities and Exchange Commission. In particular, see Equinix's recent quarterly and annual reports filed with the Securities and Exchange Commission, copies of which are available upon request from Equinix. Equinix does not assume any obligation to update the forward-looking information contained in this press release.
Equinix and IBX are registered trademarks of Equinix, Inc.
International Business Exchange is a trademark of Equinix, Inc.
SOURCE Equinix, Inc.
Michelle Lindeman (Americas), +1 (650) 598-6361, email@example.com; Liam Rose (EMEA), +1 (480) 694-7489, firstname.lastname@example.org; Lorraine Little-Bigelow (Asia-Pacific), + (852) 2970 7742, email@example.com; Equinix Investor Relations Contacts, Katrina Rymill, +1 (650) 598-6583, firstname.lastname@example.org; Paul Thomas, +1 (650) 598-6442, email@example.com