Category Archives: TelecityGroup

Equinix and Telecity to offer Microsoft Azure ExpressRoute for Office 365

datacentre cloudData centre operators Equinix and TelecityGroup are both now offering Microsoft Azure ExpressRoute for Office 365 as part of their cloud offerings. Microsoft is understood to be announcing as many as five such partnerships with data centre operators.

Co-location specialist TelecityGroup said it is offering the cloud service to three distinct types of customer, these being enterprise customers, co-location partners and a reseller channel. The reseller channel itself is broken down three groups of telcos, managed service providers and systems integrators.

The nature of the market for Office 365 is broadening, according to Adi Ayyagani, the group head of market development for TelecityGroup. “Once interest was restricted to financial services and a couple of other early adopters, but now enterprises from every vertical market are showing an interest.”

TelecityGroup is offering the Office365 service on its software defined networking Cloud-IX platform. Though a number of operators are reportedly making ExpressRoute for Office 365 available, Ayyagani claimed that the Level 3 MPLS network that underpins Cloud-IX will make all the difference. “It means customers can get the service from anywhere, it’s more robust and there’s a greater level of integration available, so that configuration of the service is a lot simpler for service providers,” said Ayyagani.

The managed service providers, telcos and systems integrators reselling the cloud service will be able to use TelecityGroup’s broad footprint to access almost any market in Europe, the Middle East or African, said Ayyagani.

Meanwhile, global data centre operator Equinix has now announced worldwide availability of the cloud version of Microsoft Office for enterprises. The service improves the levels of data privacy since ExpressRoute enables most Office 365 network traffic to avoid the public Internet. Enterprises that use ExpressRoute in an Equinix data centre also get the benefit of being able to run hybrid and multi-cloud services that didn’t previously scale well over the Internet or over typical WAN works, it says.

“Office 365 customers can now benefit from predictable network performance and the ability to better manage network availability,” said Ross Ortega, Microsoft’s Principal Program Manager for Azure Networking.

Equinix, Telecity reach merger agreement as Interxion gets kicked to the curb

Equinix and Telecity Group are merging, which will boost Equinix's presence in the EU

Equinix and Telecity Group are merging, which will stregthen Equinix’s presence in the EU

Equinix and TelecityGroup have agreed the terms of a merger that will see the American datacentre incumbent pay $2.35bn for all issued Telecity shares.  The deal also means the proposed merger between Telecity and Interxion is dead in the water.

Under the terms of the merger each Telecity shareholder will be entitled to receive £5.72 for each share and 0.0327 new Equinix shares. Following the merger’s completion Telecity shareholders will hold just over 10 per cent of the shares in the combined group.

John Hughes, executive chairman of the board of TelecityGroup will also be joining the Equinix board.

“On behalf of the Board of TelecityGroup, I am very pleased to recommend the combination of TelecityGroup and Equinix to our shareholders today. Having carefully considered all our options, the Board believes this is a compelling offer and an excellent outcome for shareholders, employees and customers,” Hughes said.

“Through this transaction, our customers will have new global opportunities for their connected datacentre requirements.  The combination of Equinix and TelecityGroup services and people will ensure the expanded business leads the way in the provision of highly-connected data centre services for customers in Europe and all over the world.”

Stephen Smith, chief executive officer and president of Equinix said TelecityGroup will “considerably strengthen” its current offerings in Europe and help reinforce its position in the interconnection business.

“The transaction will allow Equinix to benefit from increased scale and extend the global reach of our platform. We believe our offer is compelling to TelecityGroup shareholders who will realise significant value for their holdings while having the opportunity to participate in the future strengths of the combined business,” Smith said.

“We are especially pleased to be welcoming John Hughes onto the Board of the combined business and will greatly benefit from his experience in the technology space,” he added.

The move also means that the proposed merger between TelecityGroup and Interxion is dead. When news broke of the merger talks earlier this month Equinix’s board called Interxion out, claiming an Equinix merger would be more beneficial from the perspective of shareholders.

If the merger is approved TelecityGroup will give Equinix a stronger presence in the UK and extend its footprint into new locations with identified cloud and interconnection needs including Dublin, Helsinki, Istanbul, Milan, Stockholm and Warsaw, something Equinix is clearly willing to splurge on. Telecity’s market cap when news of the potential merger originally broke earlier this month stood at £1.4bn, so Equinix is paying a premium of around £950m.

Equinix: Telecity acquisition is better alternative to Telecity, Interxion merger

Equinix said its acquisition of TelecityGroup would be better for shareholders than a Telecity-Interxion merger

Equinix said its acquisition of TelecityGroup would be better for shareholders than a Telecity-Interxion merger

Equinix confirmed it is currently in discussions which could lead to its acquisition of UK datacentre specialist TelecityGroup, a move it said would significantly enhance its standing in the region.

The American datacentre incumbent last week offered TelecityGroup £2.3bn in a cash-and-shares deal that would see Equinix acquire its assets, a move that would likely jeopardize a recent Telecity merger proposal with Interxion.

Telecity has a market cap of about £1.4bn with datacentres dotted around Northern Europe; Interxion is valued at £1.27bn and has close to 40 datacentres all over the Europe.

“The Board of Equinix believes that this opportunity represents attractive shareholder value creation potential for Equinix, complementing and extending Equinix’s geographic footprint in Europe and enabling increased network and cloud density to better serve customers,” the company said in a statement.

“In the United Kingdom, the acquisition of TelecityGroup would add capacity in Central London and Docklands that would complement the focus of Equinix’s current operations in Slough. Additionally, the acquisition would add capacity in several of Equinix’s current locations throughout Europe, and extend Equinix’s footprint into new locations with identified cloud and interconnection needs including Dublin, Helsinki, Istanbul, Milan, Stockholm and Warsaw.”

“In addition, the Board of Equinix believes that a potential transaction with TelecityGroup would create a more compelling combination than the proposed merger with Interxion Holding N.V. and would deliver greater value for TelecityGroup shareholders,” the company added.

Equinix, which has a month to firm up its final offer to Telecity, has well over 100 datacentres in about 15 countries, and most of those are concentrated in major metropolitan areas.

Equinix makes £2.3bn bid for Telecity Group

Equinix has made a £2.3bn bid for Telecity Group

Equinix has made a £2.3bn bid for Telecity Group

Telecity Group said it has been approached by Equinix about a possible acquisition that could see it shell out close to £2.3bn in a cash-and-shares deal for the UK datacentre incumbent.

The Board of TelecityGroup today said it has received an approach from Equinix regarding a possible offer for TelecityGroup at £11.45 pence per share, with the consideration payable in a mixture of cash and Equinix stock. About 54 per cent of the consideration would be payable in cash and approximately 46 per cent in Equinix stock, which all told would cost nearly £2.3bn.

“Having carefully considered the Equinix proposal in the light of this exception, the Board of Telecity Group has determined that it is required by virtue of its fiduciary duties to enter into discussions with Equinix and has decided to permit Equinix to undertake a short period of due diligence,” the company said in a statement.

“At this stage, there can be no certainty that any offer will ultimately be made for Telecity Group, or as to the terms on which any offer would be made.”

Equinix has until early June to firm up its offer.

Selling itself at a time when Telecity is in a relatively strong position would be somewhat surprising, particularly given Telecity’s recent bid for Interxion. In February this year Telecity carved out a £1.3bn merger with Interxion.

If a palatable offer were made the move would give Equinix a reasonable boost in Europe. Telecity has a market cap of about £1.4bn with datacentres dotted around Northern Europe. But any deal with Telecity would likely jeopardize the merger proposal with Interxion, which is valued at £1.27bn and has close to 40 datacentres all over the Europe.

As Telecity pointed out, that merger agreement “prohibits either Interxion or TelecityGroup from soliciting alternative proposals and from discussing alternative proposals except in limited circumstances.”