Stirling & Karbo, Inc.
Stirling & Karbo, Inc.
Strategic Investors Include America Online, Benchmark Capital, Cisco, Dell Computer Corp., E*TRADE, Enron, epartners, Microsoft, NorthPoint Communications, Pacific Century CyberWorks, and Reuters Group PLC
Redwood City, Calif. December 2, 1999 Equinix, Inc., creator and operator of the only neutral IBX facilities (Internet Business Exchange facilities), today announced that the company has closed $280 million in financing from the worlds preeminent communications, ecommerce, content provider, hardware and software companies. The second round equity funding and debt offering bring the total invested in the company to more than $315 million. This amount is one of the largest raised to date by an Internet infrastructure company.
Participating in an $80 million second round of equity financing are the companys first round investors, Cisco Systems, Inc. (NASDAQ: CSCO), Microsoft Corporation (NASDAQ: MSFT) and Benchmark Capital. The new investors in this round were strategically chosen to work with Equinix on national and international fronts to ensure the future health and success of the Internet. The new investors include: America Online, Inc. (NYSE: AOL), the world's leading interactive services company; Marc Andreessen, chairman and co-founder of Loudcloud, Inc., former CTO of America Online, and co-founder of Netscape; Artemis SA, a private French holding company; The Carlyle Group, a global private equity firm; Comdisco, Inc. (NYSE: CDO), a technology services company; Dell Computer Corp. (NASDAQ: DELL), the worlds leading direct computer systems company; Enron Corporation, (NYSE: ENE), one of the worlds leading electricity, natural gas and communications companies; epartners, a $300 million New Media venture capital fund formed by News Corp. (NYSE: NWS) in June 1999; E*TRADE Group, Inc. (NASDAQ: EGRP), a global leader in online personal financial services; NorthPoint Communications, Inc. (NASDAQ: NPNT), a national, facilities-based competitive local exchange carrier(CLEC); Pacific Century CyberWorks Limited, a leading Internet firm in Hong Kong and one of the citys top ten public companies; Reuters Group PLC (NASDAQ: RTRSY), a global news and financial information company; and Temasek Holdings, one of Singapores leading institutional investors.
"Equinix is pursuing an innovative approach to Internet infrastructure," said Len Leader, president of AOL Investments. "As traffic continues to grow, we think our partners will be searching for improved distribution channels like the solution offered by Equinix."
"E*TRADEs value proposition is based on keeping our customers connected 24x7x365," said Tom Bevilacqua, chief corporate development and strategic investments officer for E*TRADE. "In a business where every second counts, down time is not an option. We chose to invest in Equinix because we believe they provide neutral, reliable, and scalable interconnections as we expand our leadership position in electronic personal financial services worldwide."
Equinix also today announced the closing of a $200 million 144A debt offering led by Salomon Smith Barney, and co-managed by Morgan Stanley Dean Witter and Goldman Sachs. Equinix issued 200,000 Units, consisting of an aggregate of $200 million in Senior Notes due in 2007 and warrants. Proceeds from the debt offering will go to accelerate the development and rollout of Equinix IBX facilities worldwide, as part of Equinixs recently announced $1.2 billion Internet infrastructure project with Bechtel Corporation (Editors note: please see Equinix/Bechtel release dated 11/4/99).
"The response to Equinix and our financing efforts has set new records in the Internet infrastructure space," said Al Avery, president and CEO of Equinix. "The caliber of investors combined with their levels of funding and commitment are clear proof of the value of the Equinix business model. We deliberately chose partners that would not only fund the companys growth, but were strongly committed to working closely with Equinix to ensure the future health and scalability of the Internet on a global scale. These efforts will go to the core of how well the Internet will continue to thrive."
Equinix IBX facilities, allow for the first time, content providers, Internet Service Providers (ISPs), Application Service Providers (ASPs) and Component Service Providers (CSPs) the flexibility to connect with the widest choice of partners and customers at strategic locations throughout the world. The IBX neutrality eliminates the roadblocks that have restricted the Internets ability to scale and keep up with the growth fueled by the critical demand for global e-commerce and business to business interconnectivity. Equinix allows IBX facility participants to grow their businesses and realize substantial cost savings by providing an unconstrained environment in which the Internet and their businesses can flourish.
Equinix opened its first IBX facility in July, 1999, in the Washington, D.C. area. Two additional IBX facilities will open within the next few months. U.S. and international IBX expansion will occur throughout 2000.
Equinix is creating and operating the first neutral IBX (Internet Business Exchange) facilities. They will serve as the core of a scalable Internet and IP network for the 21st century. IBX facility design offers customers built-from-the-ground-up colocation with unsurpassed service delivery, unlimited availability of bandwidth from multiple networks, highly scalable interconnection, complete neutrality and unsurpassed financial grade security. Content providers, ISPs, carriers, component service providers (CSPs), and application service providers (ASPs) have complete access to the services and customers they require to build and expand their businesses. These IBX facilities will ensure Equinix customers of maximum network connections, content and Internet commerce transaction availability now and in the future, while optimizing revenues and reducing operating costs. Initial Equinix customers include NorthPoint Communications, Akamai, Teleglobe, RemarQ, NaviNet, and Concentric.
For more information, please visit the companys Web site at www.equinix.com