US Data centre and communications business Equinix has gained shareholder and regulatory approval for its acquisition of the UKs TeleCityGroup, and has now completed the deal for around $3.8 billion (£2.6 billion) in a 45:55 split of cash and shares.
The takeover was first announced back in May 2015 (TelecityGroup accepts Equinix but spurns Interxion) and adds seven new European markets to Equinix’s EMEA offering with data center facilities in Bulgaria, Finland, Ireland, Italy, Poland, Sweden and Turkey.
Equinix gains more than 1,000 net new customers from TeleCityGroup, including more than 200 network and mobility companies and more than 300 cloud and IT services companies. Additionally the addition of TelecityGroup’s 40+ data centers more than doubles Equinix’s capacity in Europe, making it the largest retail colocation provider in the region and adds critical network and cloud density and new networks to the businesses interconnection platform.
The new acquisition will help Equinix meet a growing number of customer requests for a global network - more than half (54%) of Equinix’s revenue comes from customers deployed globally across all three of its regions (Americas, APAC and EMEA), and over 83% of revenue is from customers deployed across multiple metros.
While it’s been waiting for the go ahead Equinix also made an acquisition of Bit-isle in Japan in November 2015. The Telecity and Bit-isle acquisitions significantly expand Equinix’s global platform (after planned divestitures) from 105 data centers in 33 metros to 145 in 40 metros.
Telecity’s Chairman, John Hughes, will be joining the Board of Directors of Equinix, and Equinix’s EMEA President, Eric Schwartz, will serve as the head of the combined regional business in EMEA.