Key Developments For Equinix, Inc.
Equinix, Inc. (EQIX.O) (Nasdaq)
Equinix, Inc. To Acquire Switch & Data Facilities Company, Inc. In $689 Million Deal
Equinix, Inc. and Switch & Data Facilities Company, Inc. announced that they have entered a definitive agreement for Equinix to acquire Switch and Data in a transaction valued at approximately $689 million in cash and stock, based on yesterday's market close. Under the terms of the agreement, Switch and Data stockholders will have the opportunity to elect to receive either 0.19409 shares of Equinix stock or $19.06 in cash for each share of Switch and Data stock. The overall consideration to be paid by Equinix in the acquisition will be 80% Equinix stock, 20% cash. In the event that holders of more than 80% of Switch and Data's stock elect to receive Equinix stock or holders of more than 20% of Switch and Data's stock elect to receive cash, the merger consideration will be pro-rated to achieve these proportions. In addition, a portion of the cash consideration payable to Switch and Data stockholders may be replaced by an equivalent amount of Equinix stock to the extent necessary to enable the transaction to qualify as a tax-free exchange. The cash portion of the merger consideration will be financed through Equinix`s existing cash on hand. Switch and Data`s directors, executive officers and certain of its significant stockholders have agreed to vote shares representing 35% of Switch and Data`s outstanding stock in favor of the transaction. The parties are targeting completion of the transaction in the first quarter of 2010.
Equinix, Inc. Raises FY 2009 Outlook
Equinix, Inc. raised its fiscal 2009 outlook and expects total revenues to be in the range of $875.0-$880.0 million and adjusted EBITDA to be between $395.0-$400.0 million. According to Reuters Estimates, analysts were expecting the Company to report revenues of $871.7 million and EBITDA of $386.4 million for the same period.
Equinix, Inc. Plans Second Data Center For Geneva
Equinix, Inc. announced that it has planned to to build a new 4,500 square meter (48,400 square foot) data center in Geneva, Switzerland. The new GV2 International Business Exchange (IBX) data center is part of Equinix, Inc.'s continuing expansion strategy to meet growing global demand for data center services and will be the Company's second data center located in Geneva. The new project more than doubles the Company's data center footprint in the region and is part of Equinix`s $1.4 billion 2007-2010 expansion program for 15 out of the 18 markets in which it currently operates.
GI Partners Announces Sale Of Frankfurt Data Center To Equinix, Inc.'s Unit
GI Partners, a trans-Atlantic private equity firm, announced that it has sold its last remaining Fund I property, a data center in Frankfurt for $28 million to Equinix (Holding) BV, a wholly owned subsidiary of Equinix, Inc.
Equinix, Inc. To Build Two New $100 Million Data Centers In Washington, D.C. And Silicon Valley Areas
Equinix, Inc. announced plans to build a new 152,000 square foot International Business Exchange (IBX) data center in the Washington D.C. area and a new 170,000 square foot IBX data center in the Silicon Valley. The new Washington, D.C.-6 (DC6) IBX center will have capacity for 1,750 cabinets when it opens in the summer of 2010. It will be located within Equinix's Ashburn, VA data center campus where Equinix currently operates five other data centers in the Washington, D.C. market. The new Silicon Valley-5 (SV5) IBX center will be built on land owned by Equinix that is immediately adjacent to the Company's flagship Silicon Valley-1 (SV1) IBX center in San Jose, CA. It will have a total capacity for 2,600 net sellable cabinets at full build out. Equinix intends to build out the center in two phases, with total capital expenditures expected to be approximately $145 million, with approximately $100 million for the initial phase and an estimated $30 million to be spent in 2009.
