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Cowen Maintains Market Perform Following Equinix (EQIX) Announced Agreed Acquisition of Telecity

June 1, 2015 8:30 AM EDT
Get Alerts EQIX Hot Sheet
Price: $825.33 +1.23%

Rating Summary:
    27 Buy, 13 Hold, 0 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 0 | Down: 0 | New: 0
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Cowen maintains a Market Perform and $243.00 price target on Equinix (NASDAQ: EQIX) following an announced agreement to acquire Telecity. Analyst Colby Synesael views this deal negatively financially, and neutral strategically.

Synesael commented, "On Friday, Equinix/Telecity announced that Equinix has agreed to acquire Telecity in a cash/stock transaction (~50% cash/~50% stock) that values Telecity’s equity at $3.6B USD or 1,145p per share. More specifically, Telecity shareholders will receive 572.5p in cash and 0.0327 shares of Equinix stock with no apparent collar agreement. This represents a ~27% premium to Telecity’s stock price on May 6th which was the day before the companies announced that Equinix was in discussions with Telecity’s BoD and that it was considering making an offer at the same 1,145p per share price although with ~54% in cash and ~46% in stock. The transaction is subject to Telecity shareholder and regulatory approval and is expected to close in 1H16. Following the closing Telecity shareholders will own ~10% of the combined company. Note that senior management including Equinix’s CEO/CFO will be attending NAREIT in NYC June 9-11 and thus additional information is likely to come out regarding the deal at that time."

For an analyst ratings summary and ratings history on Equinix click here. For more ratings news on Equinix click here.

Shares of Equinix closed at $268.07 yesterday.



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