Equinix announced plans to acquire Itconic for €215 million in cash from the Carlyle Group with the transaction to be finalised in 4Q 2017.
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Itconic is a leading data centre, connectivity and cloud infrastructure solutions provider with 5 data centre operations in Spain and Portugal and will expand Equinix’s footprint in Europe. Equinix was up +2.7% on the news.
Importantly, the deal is another step in the consolidation of the data centre sector where leaders such as Equinix and Digital Realty are rolling up smaller competitors globally. In June 2017, Digital Realty announced plans to acquire Dupont Fabros Technology for about US$6.4 billion utilising 0.545 Digital Realty shares for 1 share in Dupont Fabros Technology.
The listed competitors were up strongly on this news with Digital Realty up +4.5%, Dupont Fabros Technology up +3.7%, QTS Realty up +1.5% and CyrusOne up +1.5%.