By Lisa Kerner
Charlotte, N.C., Oct. 21 - Equinix, Inc. announced it agreed to acquire Switch & Data Facilities Co., Inc. in a cash-and-stock transaction valued at approximately $689 million.
The acquisition will extend Equinix's presence to 16 new markets across North America and boost the company's global footprint to 79 data centers in 34 markets in North America, Europe and Asia-Pacific, an Equinix news release said.
Switch & Data stockholders can elect to receive either 0.19409 shares of Equinix stock or $19.06 in cash for each share of Switch & Data stock, subject to proration, under the companies' merger agreement.
Equinix said it will pay overall consideration of 80% Equinix stock and 20% cash, with the cash portion financed using existing cash on hand.
The transaction is expected to close in the first quarter of 2010, subject to approval by Switch & Data shareholders.
Switch & Data's directors, executive officers and some significant stockholders have agreed to vote shares representing 35% of the company's outstanding stock in favor of the deal, the release said.
Equinix was advised by J.P. Morgan Securities Inc. and Davis Polk & Wardwell LLP.
Piper Jaffray & Co., Deutsche Bank Securities Inc., RBC Capital Markets and Holland & Knight LLP advised Switch & Data.
Raymond James & Associates, Inc. provided a fairness opinion to Switch & Data's board of directors.
Equinix is a Foster City, Calif.-based provider of network neutral colocation, interconnection and managed internet technology infrastructure services.
Tampa, Fla.-based Switch & Data provides data centers that house, power and interconnect the internet.
| Acquirer: | Equinix, Inc.
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| Target: | Switch & Data Facilities Co., Inc.
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| Announcement date: | Oct. 21
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| Transaction total: | $689 million
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| Price per share: | 0.19409 Equinix shares or $19.06 in cash
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| Expected closing: | First quarter of 2010
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| Stock price for acquirer: | Nasdaq: EQIX: $98.19 on Oct. 20
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| Stock price for target: | Nasdaq: SDXC: $14.23 on Oct. 20
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