Equinix agrees to buy Telecity Group for 2.35 billion pounds

Reuters News
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Posted: May 29, 2015 2:30 AM

LONDON (Reuters) - U.S. data center company Equinix Inc <EQIX.O> said on Friday it had agreed to buy British peer Telecity Group <TCY.L> in a deal worth 2.35 billion pounds ($3.60 billion), creating the largest data center player in Europe.

Equinix said the deal would see each Telecity Group shareholder receive 572.5 pence in cash for each share, a 27.3 percent premium to the firm's closing price on May 6 before talks were announced, as well as 0.0327 new Equinix Shares.

Following completion of the deal Telecity Group shareholders will hold 10.1 percent of the combined company.

(Reporting by Neil Maidment. Editing by Jane Merriman)