October 10, 2005
IXEurope acquires ninth European datacenter third in Germany
IXEurope, Europe's fastest growing specialist datacenter services group, has acquired its third datacenter in Germany. The new datacenter, on a campus of 56,500m2 in FrankfurtamMain, is the Group's ninth with two others in the UK, one in France and three in Switzerland, and provides an immediate capacity of approximately 6,000m2 of net datacenter space.
Including the cost to adapt the facility to IXEurope standards, the total consideration for the new centre, comprising the entire freehold, associated land, assets, contracts and other commercial commitments, is in excess of EUR 14 million.
The acquisition includes two existing financial services customers and one global internet company with total forward contract revenues of EUR 17 million over the next five years.
Guy Willner, IXEurope Chief Executive Officer, commented
"This acquisition is a quantum leap forward for IXEurope. Not only is it the largest IXDatacenter to date for the Group but it puts us in a commanding position in the German market, for both datacenters and for our growing business continuity services (BCS) activity."
"The site has recently completed a very substantial refit and provides us with considerable capacity to meet the strong demand we are experiencing for datacenter based services in the region."
"It fits in extremely well with our strategy to build datacenter capacity by acquisitive and organic growth across Europe and enables us to continue our strong growth."
The investment is the fifth acquisition to be made by IXEurope since the company was founded in 1999 and follows the recent second half 2005 announcement of 47% growth yearonyear, the acquisition of GIC and the completion of a EUR 32million funding package with CIT Bank and the Group's existing shareholders EAC and Bank of America.
The facility, located north of Frankfurt, was originally opened in June 2001 following the completion of a EUR 60million high specification datacenter fitout. The facility is ideally suited for highdensity server hosting, typically a requirement of new bladeserver installations favoured by leading web organisations and major financial enterprise customers.
Currently two significant financial services clients operate missioncritical platforms and are connected to a number of fibre optic networks terminating at the datacenter. A third significant contract has just been signed concurrent with the acquisition bringing a major international web company to this new IXdatacenter.
The site comprises the main facility and two further office buildings. The 36,800m2 main facility has an immediate capacity of circa 6,000m2 net datacenter space with further expansion possible. Office and recovery space of up to 4,250m2 is available on the site both within the main building and within a 6storey office building oncampus.
In addition to its core datacenter services, IXEurope Germany currently operates dedicated business continuity sites in FrankfurtamMain and Munich, and from its Dusseldorf IXDatacenter, in total comprising just under 400 recovery seats. The new Frankfurt2 IXDatacenter provides the potential for a further 700 positions which now places IXEurope BCS in a prominent position in the German market.
IXEurope provides outsourced datacenter services and hosted solutions management in four countries UK, Germany, France and Switzerland through its network of datacenters.
As a specialist in datacenter services, IXEurope offers its customers access to flexible outsourced solutions while they maintain overall control of their projects. By continually focusing on quality, IXEurope gives clients cost effective access to expertise and exceptional service levels.
IXEurope delivers its services to systems integrators and IT consultants; hosting and managed service providers; and network service providers. Working in partnership with our solution providers, IXEurope datacenters house IT and networking systems for global enterprises, financial institutions, government agencies and ecommerce and midsized companies. IXEurope's backers include Bank of America Equity Partners and European Acquisition Capital. For more information please visit the website at www.ixeurope.com.
Guy Willner, Chief Executive
Karen Bach, Chief Financial Officer
020 7689 1400
College Hill Adrian Duffield/Clare Warren
020 7457 2815/2055
This press release contains forward-looking statements that involve risks and uncertainties. Actual results may differ materially from expectations discussed in such forward-looking statements. Factors that might cause such differences include, but are not limited to, the challenges of acquiring, operating and constructing IBX centers and developing, deploying and delivering Equinix services; unanticipated costs or difficulties relating to the integration of IXEurope into Equinix; a failure to receive significant revenue from customers in recently built out data centers; failure to complete any financing arrangements contemplated from time to time; competition from existing and new competitors; the ability to generate sufficient cash flow or otherwise obtain funds to repay new or outstanding indebtedness; the loss or decline in business from our key customers; the results of any litigation relating to past stock option grants and practices; and other risks described from time to time in Equinix's filings with the Securities and Exchange Commission. In particular, see Equinix's recent quarterly and annual reports filed with the Securities and Exchange Commission, copies of which are available upon request from Equinix. Equinix does not assume any obligation to update the forward-looking information contained in this press release.
Equinix and IBX are registered trademarks of Equinix, Inc. Internet Business Exchange is a trademark of Equinix, Inc.