Equinix is close to a deal to acquire British company Telecity

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US data centre company Equinix is close to a deal to buy British company Telecity, in a tie-up that would create the largest data centre player in Europe.

Equinix to buy Telecity

The deal is expected to be announced today, sources familiar with the matter have said. The negotiations are in the last few stages, and could still fall apart however.

The deal price is not yet know, but Equinix previously offered 2.3 billion pounds ($3.5 billion) to convince Telecity to enter into the negotiations. Telecy shares ended trading in London at 1.090 pence yesterday, giving its market cap of $2.2 billion.

Equinix was founded in 1998 and operators more than 100 facilities in 33 markets, over five continents. It said in the past that buying Telecity would provide more locations in the UK including London. It would also expand its facilities in cities like Dublin, Milan, Istanbul, Stockholm, Helsinki and Warsaw.

In February, Telecity said it would buy Dutch firm Interxion Holding NV in a $2.2 billion all-stock deal. Meanwhile Equinix said earlier this month that buying Telecity would give a more compelling combination than the merger with Interxion, and provide greater value for Telecity shareholders.

Equnix, which is based in Redwood City, California, spent $482 million buying IXEurope, in 2007. Equinix already received approval from that US IRS in May that it could into a real estate investment trust.

SOURCE: Reuters.

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