Equinix to buy TelecityGroup for $3.3 bn to expand data center biz in Europe

Equinix is set to acquire TelecityGroup for nearly $3.3 billion in a bid to expand its data center presence in Europe.

The deal will add London-based TelecityGroup’s 39 data centers in 11 European countries to Equinix’s more than 100 facilities in 15 countries.

Equinix Chief Executive Officer Steve Smith said he had looked closely at Interxion and Telecity as targets but ultimately chose Telecity because its assets and brand were a better fit.

While the purchase of Telecity would be the largest transaction in Equinix’s history, Smith said, Equinix has a strong balance sheet and is open to further deals.

Equinix Chief Executive Officer Steve Smith
TelecityGroup shareholders will hold about a 10 percent stake in the combined company.

Equinix, based in Redwood City, California, says its data centers help more than 4,800 companies connect directly to customers.
The acquisition of Telecity by Equinix would create the largest data center company in Europe.

Baburajan K
[email protected]

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