Equinix, Inc. (Nasdaq: EQIX), the global interconnection and data center company, today announced that it has completed the acquisition of Telecity Group plc. The acquisition expands Equinix’s interconnection platform in key European markets while also adding critical network and cloud density to better serve enterprise customers who are increasingly moving to highly interconnected, global data centers for accelerated business performance and innovation.
Equinix and TelecityGroup are two strong businesses and are performing very well with robust revenue growth, enviable margins, solid balance sheets and healthy investment programs. Together we expect to create even more value for our customers. TelecityGroup customers will be able to realize new business opportunities through the interconnection possibilities provided by the Equinix global colocation footprint. Equinix customers will gain access to a wider range of geographies and business opportunities in Europe. Together, we can offer customers increased network and cloud density, which will be key to meet future IT needs.
Work is starting on the integration of the two businesses, but there is no immediate impact. Your current relationships with both companies will remain unchanged for the time being.
In order to provide a coordinated and global experience for customers and prospects over the coming months, we will be fully integrating TelecityGroup under the Equinix brand. During this period, customers should expect to see data centers being rebranded from TelecityGroup to Equinix. However, to minimise confusion for our customers there will be a transition period when some of the TelecityGroup assets such as websites, portals and shared locations, may be co-branded as Equinix Telecity. Over time this co-brand will be fully replaced with the Equinix name and brand.
There is no immediate impact. Your current relationships with both companies will remain unchanged. Plans for integration and collaboration on joint customers are being developed and will be communicated to you over the coming months. Providing clarity for our customers and ensuring continued high levels of service is our priority.
Where customers are in discussion with both Equinix and TelecityGroup, we will work with you to ensure you receive an offer that is best suited to meet your business needs. We look forward to working with you to meet your business goals now and in the future.
Equinix’s plans to integrate TelecityGroup will start immediately. There will be a clear program of communications as the integration process develops ensuring clarity for our customers and a focus on maintaining the highest levels of service.
There will be no immediate impact on any current contracts at this stage, but going forward we will be reviewing these areas as part of our overall integration efforts.
Equinix and TelecityGroup have both made superior customer service a top priority. This deal ensures we continue to meet our customers’ needs by supporting growth in existing markets, expanding into new markets and providing access to a global footprint for TelecityGroup customers. This deal enhances Equinix’s core EMEA footprint through:
Together with the acquisition of Bit-Isle, our recent acquisition in Japan, Equinix will now manage a global portfolio of 145 sites around the world (net of the recently announced divestments that we need to make).
Yes, this transaction was subject to regulatory approval from the European Commission (EC). The EC has granted approval for this acquisition with certain conditions, being the divestment of 1 Equinix data center in London and 7 TelecityGroup data centers; 4 in London, 2 in Amsterdam and 1 in Frankfurt, and the businesses contained in them.
If you take services in one of the data centers being divested, you will have been contacted at the time of the EC approval in November. The process to divest these data centers is underway and we expect a sale to be completed sometime in the first half of 2016, in line with the timetable required by the European Commission. We will communicate any formal change of ownership of the data center businesses to be divested when it happens.
Your current relationships with your account manager and customer service contacts will remain unchanged. Plans for integration and collaboration on joint customers are being developed and will be communicated over the coming months. Providing clarity for our customers and ensuring continued high levels of service is our priority.
The combined EMEA business will be led by Eric Schwartz, President of Equinix EMEA. John Hughes, TelecityGroup former Executive Chairman will be joining the Equinix Inc. Board of Directors.
We have no current plans to close any facilities as a result of this acquisition.
There are no changes at this time. You should continue to work with TelecityGroup and your current contacts in line with the existing arrangements and processes. You will be notified of any further developments as our integration efforts get underway.
Information for investors can be found on Equinix’s Investor Relations site, please go to www.equinix.com/company/investors