(WEB HOST INDUSTRY REVIEW) — Data center operator Equinix (www.equinix.com) announced on Tuesday it has completed its acquisition of rival Switch and Data (www.switchanddata.com) for $683.4 million.
The companies first announced the acquisition in October, at which time it was valued at $689 million.
In January, the companies announced that the deal’s closure would be delayed until the second quarter after antitrust regulators made a second request for additional information. In February, Switch and Data’s shareholders finally approved the proposed acquisition.
The transaction will comprise of about $134 million in cash and about 5.5 million shares of Equinix common stock valued at $549.4 million based on Friday’s closing price.
By acquiring Switch and Data, Equinix is able to further strengthen its leadership position in the global data center services market.
Equinix will now extend its presence to 16 new metropolitan areas across North America and expand its regional data center footprint from six to 22 metropolitan areas.
“Equinix’s acquisition of Switch and Data is built on a strong, common business model and cultural fit, enabling us to extend our North American reach as a global leader of data center services,” says Steve Smith, president and CEO of Equinix. “This combination allows us to expand our global service delivery platform to improve the performance of critical content and applications by reducing latency. Our collective customers will clearly benefit from our commitment to extraordinary customer satisfaction as we broaden our portfolio of services together.”
The acquisition will also be beneficial to the combined company’s customers, as it is expected to give them broader access to local markets throughout North America for their network edge deployments.
Former Switch and Data customers can now access global data center services that provide extended market reach and facilitate interconnected business ecosystems.
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