Equinix finalises £2.35bn Telecity merger

 
Joe Hall
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An Equinix data centre (Source: Getty)

US data centre firm Equinix has finalised a deal for UK-based rival Telecity, the group confirmed early this morning.

Read more: Bidding war for Telecity as rival offers £2.31bn

The deal, worth £2.35bn, will bring Telecity's executive chairman John Hughes - awarded a CBE for international telecommunications - onto the Equinix board.

Telecity had previously been looking at buying Dutch firm Interxion, forcing Equinix to act in approaching the group it believes can help it "complement and extend" its geographic footprint in Europe. The firm's share price was sent soaring after Equinix declared its interest last month.

In a statement Hughes commented:

Through this transaction, our customers will have new global opportunities for their connected datacentre requirements. The combination of Equinix and TelecityGroup services and people will ensure the expanded business leads the way in the provision of highly-connected data centre services for customers in Europe and all over the world.

The deal represents a premium of 34.9 per cent on Telecity's February 10 closing price - the last business day before the proposed merger was announced - and will entitle shareholders to 572.5 pence per share and 0.0327 New Equinix shares.

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