Equinix takes over rival Switch & Data for $689 million
22 Oct 2009
Florida-based a provider of global data center services, Equinix Inc. said yesterday it would acquire rival Switch & Data Facilities Co. Inc. for $689 million in cash and stock in order to unite their data center operations to expand its global service offering.
The deal will expand the company's presence to 16 new markets across North America including New York, Dallas and Toronto.
Under the terms of the agreement, Switch and Data stockholders will have the opportunity to elect to receive either 0.19409 shares of Equinix stock or $19.06 in cash for each share of Switch and Data stock.
The overall consideration to be paid by Equinix in the acquisition will be 80 per cent Equinix stock, 20 per cent cash.
The acquisition "gives us an efficient way to enter new markets," Steve Smith, Equinix's president and chief executive, said in an interview.
Equinix will integrate Switch and Data's data center business and operations, including the company's 34 data centers in 22 markets in the US and Canada.
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