US data centre operator Equinix has completed the acquisition of UK-based Telecity for USD 3.8 billion, consolidating its position as the largest retail colocation provider in Europe. Originally announced in May as a recommended cash and share offer, the transaction was approved last week by Telecity shareholders and UK regulators, having obtained the European Commission’s green light in November. The acquisition was comprised of a cash payment of around USD 1.7 billion and the issuance of approximately 6.8 million shares of Equinix common stock valued at approximately USD 2.1 billion. As part of the deal, Telecity chairman John Hughes, will be joining the board of directors of Equinix, and Equinix EMEA president Eric Schwartz will serve as the head of the combined regional business in EMEA.
Equinix said the deal will add seven new European markets to its data centre portfolio, including facilities in Bulgaria, Finland, Ireland, Italy, Poland, Sweden and Turkey. In total, Telecity brings more than 1,000 net new customers to Equinix, including more than 200 network and mobility companies and over 300 cloud and IT services companies.
The California-based data centre company has made three acquisitions in the last twelve months, including professional services company Nimbo in the US in January 2015 and Bit-isle in Japan in November 2015. The Telecity and Bit-isle acquisitions will serve to expand Equinix's global portfolio from 105 to 145 data centres.
