Equinix commences $1.25bn public offering of its common stock

Maria Nikolova

Equinix also confirms it is in advanced discussions with a seller to acquire selected data center sites and their operations.

Global interconnection and data center company Equinix Inc (NASDAQ:EQIX) today announced that it commenced a public offering of $1,250.0 million of its common stock. All shares of common stock to be sold in the offering will be offered by Equinix.

In addition, Equinix plans to grant the underwriters a 30-day option to purchase up to an additional $187.5 million of shares of its common stock.

The offering is subject to market conditions, and there can be no assurance as to whether or when the offering may be completed, or as to the actual size or terms of the offering.

Also today, Equinix announces that it is in advanced discussions with a seller to acquire selected data center sites and their operations. If Equinix completes the potential acquisition, it aims to use a portion of the net proceeds of the offering to fund the cost of the acquisition, and the remainder for general corporate purposes, such as repayment of indebtedness, capital expenditures and working capital.

The completion of the offering is not contingent upon the completion of the acquisition. If the acquisition is not completed, then Equinix intends to use all of the net proceeds for general corporate purposes.

Let’s recall that Equinix reported revenues of $1.445 billion for the first quarter of 2020, up from $1,417 billion in the preceding quarter and up from $1,363 billion in the first quarter of 2019.

Interconnection revenues in the first quarter of 2020 grew 14% year-over-year, or 15% on a normalized and constant currency basis, steadily rising over the last few quarters, reflecting the demand across Equinix’s portfolio of interconnection products. In the first three months of 2020, Equinix added an incremental 6,800 interconnections, fueled by content video streaming and unified communication services. ECX Fabric™ demonstrated strong growth in average revenue per user, as higher bandwidth and inter-metro connections become a larger share of the total.

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