A non-binding agreement on an all-share merger ‘expands gateways’ for data centres in Africa, Asia, and Eastern Europe
Telecity said the deal would bring “complementary strengths to fulfil the expanding product, service and geographic needs of our customers”.
Combined, both firms now have a net value of £600 million. The firms cited demand for cloud services and data centres was the catalyst for the deal.
Interxion CEO David Ruberg said: “Bringing together the assets and solutions offered by Interxion and Telecity will improve our customers’ ability to realise the benefits of transitioning to the cloud.
“Together, we expect to be able to further reduce our customers’ total cost of operation, help them deliver improved functionality to their customers, and deliver industry leading quality of service.”
Interxion currently operates 39 data centres in 11 countries, whilst Telecity operates its colocation services in 12 locations around Europe.
Interxion shareholders to own 45 percent
Interxion said that under the terms of the non-binding agreement, Interxion shareholders would receive 2.3386 new TelecityGroup shares per Interxion share. As a result, Interxion shareholders would own approximately 45%, and TelecityGroup shareholders approximately 55%, of the combined group.
TelecityGroup executive chairman John Hughes said: “We think that the combination of TelecityGroup and Interxion would represent an extremely compelling combination for all stakeholders of both companies.
“The transaction would truly transform both organisations and allow them to deliver a superior proposition to the joint customer base. In particular, we would like to thank David Ruberg for his key contribution in orchestrating this proposed transaction and we are delighted that he has agreed to launch the new combined group.”
Interxion also announced its Q4 results today for the three months and year ended 31 December 2014. Revenue for the fourth quarter and full year is expected to have increased by 15% and 11% to approximately £66.7 million and £252.7 million respectively.
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