Equinix completed its previously-announced acquisition of IXEurope Plc, which operates 14 data centers across Europe. IXEurope’s 14 data centers comprise 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 serves more than 450 enterprise and Internet customers, including Merrill Lynch, Avis Europe, Deutsche Boerse, Citigroup, Rackspace and SurfControl.
Equinix will integrate IXEurope’s network-neutral data center business and operations under the Equinix brand. The current IXEurope management team, including Guy Willner, IXEurope CEO, and Christophe de Buchet, IXEurope COO, will join Equinix and continue to operate the European business from the IXEurope London headquarters, which will now serve as Equinix’s European regional headquarters.
Under the terms of the acquisition, IXEurope shareholders will receive 140 British pence in cash for each IXEurope share, payable on September 28, 2007, valuing the share capital of IXEurope, on a fully diluted basis, at approximately GBP 270.1 million or approximately $550 million plus the assumption of debt (based on exchange rates on September 13, 2007).
Separately, Equinix raised its financial guidance. For the third quarter of 2007, revenues are now expected to be in the range of $101.0 to $102.0 million, including approximately $4.0 million from Europe. Cash gross margins are expected to be approximately 61%. EBITDA for the third quarter is expected to be between $38.0 and $39.0 million, including approximately $500,000 from Europe. Capital expenditures are expected to be approximately $105.0 to $110.0 million, including approximately $5.0 million of capital expenditures in Europe.
For the full year of 2007, total revenues are expected to be in the range of $413.0 to $415.0 million, including approximately $37.0 million anticipated from Europe. Total year cash gross margins are expected to be approximately 62%, including approximately $6.9 million of net cash costs attributed to its expansion IBXs. EBITDA for the year is expected to be between $149.0 and $151.0 million, including approximately $5.0 million anticipated from Europe. Capital expenditures for 2007 are expected to be $405.0 to $415.0 million, including approximately $40.0 million of ongoing capital expenditures and approximately $25.0 million of capital expenditures related to Europe. Expansion capital expenditures are for the build outs of the Frankfurt, London, Paris, Singapore, Tokyo and Washington, D.C. expansions opened this year, as well as the announced expansions in Chicago, London, Los Angeles, New York, Silicon Valley and Washington D.C. metro areas. As previously announced, Equinix acquired two properties in 2007 for approximately $115.0 million.
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