Equinix, Inc., a leading provider of network-neutral data centers and Internet exchange services, has announced its firm intention to make an offer for the entire issued share capital of IXEurope plc, a provider of colocation services in Europe. The acquisition comes as Equinix is in the midst of a more than US$450 million expansion program in the US and Asia-Pacific since 2006, and it is expected to strengthen Equinix's market leading position by enabling the company to offer a comprehensive global solution for customers.
Equinix will 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 London, Zurich, Frankfurt, Munich, Paris, Dusseldorf and Geneva. The company's more than 450 enterprise and Internet customers include Merrill Lynch, Avis Europe, Deutsche Boerse, Citigroup, Rackspace and SurfControl.
With the addition of IXEurope to Equinix's announced expansions, Equinix will have a total footprint of more than three million square feet of data center space across 17 markets in the US, Europe and Asia-Pacific, making it the most comprehensive, network neutral, global service provider in the market. 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.
The acquisition will allow Equinix to immediately expand into the European market, and it will enable Equinix to provide customers with a single-source global solution for their data center and network connectivity services. Despite the differences of the European market and the existence of multiple network-neutral players in the market, this acquisition offers Equinix a variety of benefits as the company builds upon its market leadership in the US and Asia-Pacific.
"The strategic 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 US, Asia-Pacific and Europe, said Steve Smith, CEO of Equinix. "Customers are increasingly demanding global solutions as the colocation industry continues to grow at double digit rates, and IXEurope has become one of the top providers of colocation services in Europe, operating high-quality data centers in key markets. Its integration into Equinix will continue our growth and allow us to meet the increasing expansion requirements of our global content, network and enterprise customers. We look forward to welcoming the customers and employees of IXEurope into Equinix.
"Since its launch in 1999, IXEurope's management has successfully established 14 IXDatacentres in four countries (4 IXDatacentres since its initial public offering in 2006), providing colocation services to many blue-chip, international customers, said Guy Willner, CEO of IXEurope. "The combination of IXEurope's European reach and operational expertise with Equinix's existing global operations will further extend Equinix's market leading position and allow it to further leverage the tremendous growth opportunities that exist in the colocation market worldwide.
The current management team, including Guy Willner, IXEurope CEO, and Christophe de Buchet, IXEurope COO, will join Equinix and continue to operate the European business. Equinix and IXEurope will assemble an integration team comprised of senior managers to ensure a seamless integration. Equinix's European regional headquarters will be located in London.