Equinix, Inc. has announced that it has closed the transaction for the sale of eight European data center assets to Digital Realty Trust, Inc. for approximately $874 million. The sale of these data center assets was required by the European Commission as part of its approval of Equinix's purchase of TelecityGroup plc, which closed in January 2016.
Additionally, Equinix and Digital Realty entered into an agreement for the purchase by Equinix for EUR €189,750,000 (approximately USD $211 million) of Digital Realty's operating business in St. Denis, Paris, including its real estate and data center facility, which currently houses Equinix's PA2 and PA3 International Business Exchange™ (IBX®) data centers. The Paris acquisition is subject to certain customary formalities, and is expected to close in Q3 of 2016.
RBC Capital Markets served as Equinix's financial advisor, and Slaughter and May acted as Equinix's lead external legal advisors in connection with these transactions.
In January 2016, Equinix completed the acquisition of TelecityGroup plc in a transaction valued at approximately $3.8 billion (£2.6 billion). The addition of TelecityGroup's 34+ data centers, net of the divestment, more than doubled Equinix's capacity in Europe, fortifying its position as the largest retail colocation provider in the region and in the world.
"Equinix's acquisition of TelecityGroup added critical network and cloud density to better serve our global customers. Completing this last milestone in the acquisition process paves the way for us to focus fully on helping our enterprise customers leverage our highly interconnected, global data centers for accelerated business performance and innovation. Additionally, the purchase of the Paris facilities is an important step in managing our real estate portfolio and ensuring we have the ability to add more capacity in this key market in the future," said Steve Smith, president and CEO, Equinix.
The divesture of eight European assets to Digital Realty Trust to meet the European Commission's requirements in the purchase of TelecityGroup include the following facilities: TelecityGroup's Bonnington House, Sovereign House, Meridian Gate and Oliver's Yard data centers and Equinix's West Drayton data center in London; TelecityGroup's Science Park and Amstel Business Park I in Amsterdam; and TelecityGroup's Lyonerstrasse data center in Frankfurt.
As the result of the Telecity acquisition Equinix added seven new markets in Europe to its portfolio including Dublin, Helsinki, Istanbul, Manchester, Sofia, Stockholm, and Warsaw. Equinix now operates 145 IBX data center facilities in 40 markets, providing customers even more ways to connect with other businesses around the world on Platform Equinix™.