CORRECTING & REPLACING Equinix Completes $683.4 Million Acquisition of Switch & Data, Strengthening Its Leadership in Data Ce...
May 04 2010 - 7:01AM
Business Wire
Please replace the release dated May 3, 2010 with the following
corrected version due to multiple changes to the date and time of
the conference call and its replay.
The corrected release reads:
EQUINIX COMPLETES $683.4 MILLION
ACQUISITION OF SWITCH AND DATA, STRENGTHENING ITS LEADERSHIP IN
DATA CENTER SERVICES
- Combined company to operate more
than six million gross square feet of global data center space with
more than 575 network service providers
- Acquisition provides customers
broader access to 35 global data center metropolitan areas
throughout North America, Europe and Asia-Pacific regions for
extended market reach and interconnected business ecosystems
- Equinix to host an investor call
on Friday, May 7, 2010 at 8:30 a.m. ET (5:30 a.m. PT) to discuss
updated view on the combined company
Equinix, Inc. (Nasdaq:EQIX), a provider of global data center
services, today announced completion of its acquisition of Switch
and Data Facilities Company, Inc. (Nasdaq:SDXC) in a transaction
valued at $683.4 million and comprised of a cash payment of
approximately $134.0 million and the issuance of approximately 5.5
million shares of Equinix common stock valued at $549.4 million
based on the closing price of Equinix common stock as of April 30,
2010. This amount excludes any value attributed to the Switch and
Data employee equity awards assumed, which will be finalized at a
later date. The transaction further strengthens Equinix’s
leadership position in the global data center services market by
extending the company’s presence to 16 new metropolitan areas
across North America and by expanding the company’s regional data
center footprint from six to 22 metropolitan areas, providing
expansion opportunities for Equinix’s growing global base of
customers.
“Equinix’s acquisition of Switch and Data is built on a strong,
common business model and cultural fit, enabling us to extend our
North American reach as a global leader of data center services.
This combination allows us to expand our global service delivery
platform to improve the performance of critical content and
applications by reducing latency,” said Steve Smith, president and
CEO of Equinix. “Our collective customers will clearly benefit from
our commitment to extraordinary customer satisfaction as we broaden
our portfolio of services together.”
The completed acquisition will help customers respond to two
broad market trends. The continued rapid growth for online
information is requiring companies to reliably connect and improve
the performance of their business-critical content and applications
by storing and distributing latency-sensitive assets at the network
edge, near local population centers. At the same time, the market
compels companies to develop aggregation and distribution
strategies for their digital assets in markets around the world.
The transaction is expected to give Equinix customers broader
access to local markets throughout North America for their network
edge deployments. Former Switch and Data customers can now benefit
from global data center services that provide extended market reach
and enable interconnected business ecosystems.
Equinix announced its intent to acquire Switch and Data on
October 21, 2009. Equinix will integrate Switch and Data’s data
center business and operations under the Equinix brand as part of a
comprehensive integration program that includes the company’s 34
data centers in 22 markets in the U.S. and Canada. The transaction
adds more than one million gross square feet of data center
capacity, bringing Equinix’s total to more than six million gross
square feet, and expanding its global service delivery platform
footprint to 87 IBX and partner data centers in 35 metropolitan
areas across North America, Europe and Asia-Pacific. The
transaction allows Equinix to immediately expand into new strategic
metropolitan areas, including Atlanta, Denver, Miami, Seattle and
Toronto, as well as provides a platform for the future expansion of
the former Switch and Data assets. In addition, the deal expands
the number of network service providers available from 410 to more
than 575 providers for Internet, peering, Ethernet and wide area
network (WAN) services within Equinix IBX data centers.
The Company will discuss the closure of this transaction and
provide an update on its view of the combined company on a
conference call on Friday, May 7, 2010, at 8:30 a.m. ET (5:30 a.m.
PT). To hear the conference call live, please dial 773-756-4788
(domestic and international) and reference the passcode (EQIX). A
simultaneous live Webcast of the call will be available over the
Internet at www.equinix.com, under the Investor Relations
heading.
A replay of the call will be available beginning on Friday, May
7, 2010 at 10:30 a.m. (ET) through June 8, 2010 by dialing
203-369-3826 and reference the passcode (2010). In addition, the
Webcast will be available on the company's Web site at
www.equinix.com. No password is required for the webcast.
About Equinix
Equinix, Inc. (Nasdaq:EQIX) provides global data center services
that ensure the vitality of the information-driven world. Global
enterprises, content and financial companies, and more than 575
network service providers rely upon Equinix’s insight and expertise
to protect and connect their most valued information assets.
Equinix operates 87 International Business Exchange™ (IBX®) and
partner data centers across 35 metro areas in North America, Europe
and Asia-Pacific.
Important information about Equinix is routinely posted on the
investor relations page of its website located at
www.equinix.com/investors. We encourage you to check Equinix’s
website regularly for the most up-to-date information.
This press release contains forward-looking statements that
involve risks and uncertainties. Actual results may differ
materially from expectations discussed in such forward-looking
statements. Factors that might cause such differences include, but
are not limited to, the challenges of acquiring, operating and
constructing IBX centers and developing, deploying and delivering
Equinix services; unanticipated costs or difficulties relating to
the integration of Switch and Data into Equinix; a failure to
receive significant revenue from customers in recently built out
data centers; failure to complete any financing arrangements
contemplated from time to time; competition from existing and new
competitors; the ability to generate sufficient cash flow or
otherwise obtain funds to repay new or outstanding indebtedness;
the loss or decline in business from our key customers; the results
of any litigation relating to past stock option grants and
practices; and other risks described from time to time in Equinix’s
filings with the Securities and Exchange Commission. In particular,
see Equinix's recent quarterly and annual reports filed with the
Securities and Exchange Commission, copies of which are available
upon request from Equinix does not assume any obligation to update
the forward-looking information contained in this press
release.
Equinix and IBX are registered trademarks of Equinix, Inc.
International Business Exchange is a trademark of Equinix, Inc.
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