REG - Equinix, Inc TeleCity Group PLC - Offer Update - European Commission Clearance <Origin Href="QuoteRef">EQIX.O</Origin> <Origin Href="QuoteRef">TCY.L</Origin>

EquinixAnnouncement

13/11/2015 15:51

RNS Number : 7328F
Equinix, Inc
13 November 2015
NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, IN, INTO OR FROM ANY JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OF SUCH JURISDICTION.
For immediate release
November 13, 2015
RECOMMENDED CASH AND SHARE OFFER
FOR
TELECITY GROUP PLC
BY
EQUINIX, INC
European Commission Phase I Clearance
On 29 May 2015, the Boards of Equinix, Inc. ("Equinix") and TelecityGroup plc ("TelecityGroup") announced that they had reached agreement on the terms of a recommended cash and share offer for the entire issued and to be issued share capital of TelecityGroup ("the Offer").
Today, Equinix confirms that the European Commission has granted clearance for the Offer.
The combination of Equinix and TelecityGroup will enable Equinix to expand its platform throughout key European markets and further its strategy to increase network and cloud density in these markets. It complements and enhances Equinix's existing portfolio and provides the opportunity to increase network and cloud density to better serve enterprise customers who are increasingly moving to highly interconnected, global data centers. Upon completion, the combined company will operate a total of 145 data centers around the world.
The clearance follows European Commission approval of agreed commitments proposed by Equinix and TelecityGroup to divest eight facilities. These facilities are:
 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 nine months to September 2015, the assets to be disposed of contributed approximately 4% of the combined TelecityGroup and Equinix revenues for that period.
As a result of this clearance, the pre-condition of the Offer has been satisfied and the Scheme Document in relation to the Offer is expected to be posted to TelecityGroup shareholders before the end of November 2015. The Scheme Document will include full details of the Scheme, together with notices of the Court Meeting and the TelecityGroup General Meeting and the expected timetable, and will specify the action to be taken by Scheme Shareholders.
Equinix expects the Offer to close in the early part of the previously communicated H1 2016 period.
Given the requirements for these divestitures, Equinix expects this transaction to be adjusted funds from operations (AFFO) per share accretive to Equinix 12 months from closing.
Stephen Smith, Chief Executive Officer & President of Equinix, said:
"We are pleased to have received clearance from the European Commission for the acquisition of Telecity. The combination of Telecity and Equinix is a milestone in the ongoing development of our platform and will bring the benefits of greater cloud and network density to our customers in Europe and beyond."
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About Equinix
Equinix, Inc. (Nasdaq: EQIX) connects the world's leading businesses to their customers, employees and partners inside the most interconnected data centers. In 33 markets across five continents, Equinix is where companies come together to realize new opportunities and accelerate their business, IT and cloud strategies. www.equinix.com.
Important Notices
In accordance with Rule 26.1 of the Code, a copy of this announcement will be available, subject to certain restrictions relating to persons resident in certain jurisdictions, on Equinix's website at www.equinix.com. For the avoidance of doubt, the contents of that website are not incorporated into, and do not form part of, this announcement.
Each of the Equinix, Inc. directors accept responsibility for the information contained in this announcement. To the best of the knowledge and belief of each of the Equinix, Inc. directors (who have taken all reasonable care to ensure that such is the case), the information contained in this announcement for which they are responsible is in accordance with the facts and does not omit anything likely to affect the import of that information.
This announcement is not intended to and does not constitute or form part of any offer to sell or subscribe for or any invitation to purchase or subscribe for any securities or the solicitation of any vote or approval in any jurisdiction pursuant to the transaction or otherwise nor will there be any sale, issuance or transfer of securities in any jurisdiction in contravention of applicable laws. The Offer will be implemented solely pursuant to the terms of the Scheme Document to be published by Telecity, which will contain the full terms and conditions of the transaction, including details of how to vote in respect of the transaction. Any decision in respect of, or other response to, the Offer should be made only on the basis of the information contained in the Scheme Document.
This announcement contains certain forward-looking statements with respect to Telecity and Equinix, in particular regarding the process for implementing the commitments given the European Commission. By their nature, forward-looking statements involve risk and uncertainty, because they relate to events and depend on circumstances that will occur in the future and the factors described in the context of such forward-looking statements in this announcement could cause actual results and developments to differ materially from those expressed in or implied by such forward-looking statements. Although it is believed that the expectations reflected in such forward-looking statements are reasonable, no assurance can be given that such expectations will prove to have been correct, and in particular the basis on which the commitments will be implemented. You are therefore cautioned not to place undue reliance on these forward-looking statements, which speak only as at the date of this announcement. Equinix does not assume any obligation to update or correct the information contained in this announcement (whether as a result of new information, future events or otherwise), except as required by applicable law.
Unless otherwise specified herein, capitalized terms used herein shall have the meanings assigned to such terms in the Rule 2.7 announcement released on 29 May 2015.

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