Ix Europe (LSE:IXE)
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Equinix, Inc. (Nasdaq:EQIX), the leading provider of network-neutral
data centers and Internet exchange services, and IXEurope Plc (“IXEurope”)
(AIM:IXE), a provider of colocation services in Europe, announced today
that the boards of its subsidiary, Equinix UK Limited (Equinix UK), and
IXEurope have reached agreement on improved terms for the acquisition of
all of the outstanding shares of IXEurope for 140 pence per share. In
exchange, Equinix UK has now received hard irrevocable undertakings from
the IXEurope directors and from shareholders who together hold
approximately 67 percent of the existing issued ordinary share capital
of IXEurope to vote in favor of the resolutions to approve the
acquisition.
“The announcement of our intention to acquire
IXEurope three weeks ago created additional interest in the company and
an unsolicited approach from another company,”
said Steve Smith, CEO of Equinix. “The
acquisition of IXEurope by Equinix will solidify Equinix’s
position as the world’s market leading
colocation provider with high-quality data centers across the United
States, Asia-Pacific and Europe and is strategic to our growth. This
announcement today secures our acquisition plan at a fair and equitable
price.”
“We believe that Equinix’s
offer is a good deal for IXEurope shareholders,”
said Guy Willner, CEO of IXEurope. “The
directors of IXEurope have unanimously agreed to recommend that IXEurope
shareholders vote in favor of it.”
Equinix intends to integrate IXEurope’s
network-neutral data center business and operations under the Equinix
brand. IXEurope’s business includes 14 data
centers comprising more than 380,000 square feet of net sellable space
throughout Europe, including centers in Dusseldorf, Frankfurt, Geneva,
London, Munich, Paris and Zurich. The company’s
more than 450 enterprise and Internet customers include Avis Europe,
Citigroup, Deutsche Boerse, Merrill Lynch, Rackspace and SurfControl.
Equinix is targeting completion of the transaction in mid-September
2007. The closing and its timing are subject to the approval of IXEurope’s
stockholders and the UK courts as well as satisfaction or waiver of
other closing conditions. It is still intended that the acquisition be
implemented by means of a scheme of arrangement, although Equinix UK
still reserves the right to implement the acquisition by way of a
takeover offer directly to IXEurope shareholders.
Under the terms of the revised announcement, IXEurope shareholders will
receive 140 pence in cash for each IXEurope share held at the Scheme
Record Time, valuing the share capital of IXEurope, on a fully diluted
basis, at approximately £270.1 million or
$555.0 million plus the assumption of debt. The additional $73.0 million
over the original price of $482.0 million is comprised of $58.0 million
for the 12.0 percent premium over the initial offer by Equinix of 125
pence per share on June 27, 2007 and $15.0 million of currency
fluctuation which has been partially offset by hedging activities.
About Equinix
Equinix is the leading global provider of network-neutral data centers
and Internet exchange services for enterprises, content companies,
systems integrators and network services providers. Through the company’s
Internet Business Exchange™ (IBX®)
centers in 10 markets in the U.S. and Asia, customers can directly
interconnect with every major global network and ISP for their critical
peering, transit and traffic exchange requirements. These
interconnection points facilitate the highest performance and growth of
the Internet by serving as neutral and open marketplaces for Internet
infrastructure services, allowing customers to expand their businesses
while reducing costs.
About IXEurope
IXEurope is one of Europe’s fastest growing
providers of data center services. Its principal activities include
primary data center services, connectivity services and business
continuity solutions.
IXEurope works with enterprise and Internet customers to provide
resilient data center infrastructure to house their IT systems far more
cost-effectively than through in-house provision. The benefits include
optimized IT performance, improved systems availability and reduced
corporate risk through improved regulatory compliance. By continually
focusing on quality, IXEurope also gives clients exceptional service
levels and on-site access to a high level of technical expertise.
With award winning data center facilities in key European cities, broad
technology expertise and a proven track record, IXEurope provides
solutions that give customers the confidence that their operations are
protected. The Company is ISO 9001:2000 certified and has over 450
customers in the enterprise, Internet and networking markets including
Merrill Lynch, Deutsche Boerse, Citigroup, Rackspace and SurfControl.
IXEurope is listed on the London Stock Exchange Alternative Investment
Market.
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 IXEurope 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.
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. Internet
Business Exchange is a trademark of Equinix, Inc.