Equinix Reaches Agreement To Buy Telecity Group In GBP 2.35 Bln Deal

(RTTNews) - Equinix Inc. (EQIX) and Telecity Group plc (TCY.L) announced that they have reached agreement on the terms of a recommended cash and share offer for the entire issued and to be issued share capital of TelecityGroup.

Meanwhile, the merger and implementation agreement that TelecityGroup entered into with Interxion on 9 March 2015 has been terminated.

As per the terms of deal with Equinix, each TelecityGroup Shareholder will be entitled to receive 572.5 pence in cash; and 0.0327 New Equinix Shares for each TelecityGroup Share.

The Transaction represents a value of approximately 1,145.0 pence per TelecityGroup Share and a value of approximately 2.352 billion pounds for TelecityGroup's entire issued and to be issued share capital based on the volume-weighted average share price of $267.74 per Equinix Share for the 5 day period to 28 May 2015 and an exchange rate on 28 May 2015 of 1.5283.

Based on the value of approximately 1,145.0 pence per TelecityGroup Share, the terms of the Transaction represent a premium of approximately 34.9 per cent to the Closing Price of 848.5 pence per TelecityGroup Share on 10 February 2015 (being the last Business Day before TelecityGroup announced its proposed merger with Interxion.)

Following completion of the Transaction, TelecityGroup Shareholders will hold approximately 10.1 per cent of the Combined Group.

Equinix has agreed that John Hughes, Executive Chairman of the Board of TelecityGroup, will join the Board of Equinix on completion of the Transaction.

The directors of TelecityGroup intend unanimously to recommend that TelecityGroup Shareholders vote in favour of the Scheme at the Court Meeting and the resolutions relating to the Transaction at the TelecityGroup General Meeting, as the directors of TelecityGroup have irrevocably undertaken to do in respect of their own beneficial holdings of 128,318 TelecityGroup Shares in aggregate representing approximately 0.0632 per cent. of TelecityGroup's issued share capital on 28 May 2015.

The Board of Equinix believes that the Transaction will deliver significant value for the shareholders of both TelecityGroup and Equinix.