Equinix said it has obtained the European Commission’s green light to acquire Telecity, announced in May. The clearance follows the EC approval of agreed commitments proposed by Equinix and Telecity to divest certain facilities. Equinix now expects the transaction to close early in the first half of 2016.
Under the terms of the clearance, Equinix and TelecityGroup have agreed to divest the following facilities: TelecityGroup's Bonnington House, Sovereign House, Meridian Gate and Oliver's Yard data centres and Equinix's West Drayton data centre in London; TelecityGroup's Science Park and Amstel Business Park I in Amsterdam; and TelecityGroup's Lyonerstrasse data centre in Frankfurt. In the first nine months of the year, these assets contributed about 4 percent of the combined Telecity and Equinix revenues.
With the divestitures, Equinix expects the merger with Telecity to be adjusted funds from operations (AFFO) per share accretive to Equinix twelve months from closing. Upon close, the combined company will operate a total of 145 data centres around the world.
