As part of the transaction, ST Telemedia, through its subsidiary STT Communications Ltd., will make a
strategic investment in Equinix in the amount of $30 million. With this investment, Equinix also announced plans to substantially de-leverage the business by retiring more than $130 million in debt, including approximately 80% of its outstanding
Senior Notes, through a combination of cash and equity, and a further reduction of its credit facility.
Equinix will integrate
i-STTs Internet exchange service business and substantially all of Pihanas Internet exchange center operations in Asia-Pacific and the U.S. into the Equinix business. With the addition of the i-STT and Pihana businesses, Equinix will
have a total footprint of more than one million square feet of Internet exchange center space across 14 Internet Business Exchange (IBX®) centers in six countries. The company will also have more
than 400 customers, including AT&T, EDS, Electronic Arts, Goldman Sachs, IBM, Kyocera, MSN, Royal & SunAlliance, Sony, and Yahoo! Significantly, the company will feature more than 100 network service providers, adding to the unique mix of
service providers already available at Equinix. The companies are targeting completion of the transaction by year-end. The closing and its timing are subject to the approval of Equinixs stockholders, SEC clearance and satisfaction or waiver of
other closing conditions.
The transaction will enable Equinix to provide customers with a single-source solution for their Internet
infrastructure and IT services requirements for consistent quality and streamlined, integrated services throughout the U.S. and Asia-Pacific. It will also allow Equinix to immediately expand into Asia-Pacific, the fastest growing global market for
IT infrastructure services according to Gartner Research, without incurring the significant capital expenditures of building IBXs internationally, and will provide Asia-Pacific customers with immediate access to leading IT infrastructure and
Internet exchange services in the United States. Additionally, Equinix will gain access to i-STTs and Pihanas customer base of marquee Asian and multi-national business customers.
This merger presents clear synergies between the businesses and creates the largest global network neutral Internet exchange company, said Peter Van Camp, CEO of Equinix.
Adding the assets of i-STT and Pihana to Equinix extends beyond the significant operational benefits of combining the businesses. Most importantly, Equinix now offers customers access to quality