FOSTER CITY, Calif., and TAMPA, Fla. -- Equinix, Inc. (Nasdaq: EQIX), a provider of global data center services, and Switch & Data Facilities Company, Inc. (Nasdaq: SDXC), a leading provider of data center and Internet exchange services, have entered a definitive agreement for Equinix to acquire Switch and Data in a transaction valued at approximately $689 million in cash and stock, based on yesterday’s market close. The combination of the two companies will further strengthen Equinix’s leadership position in the global data center services market by extending the company’s presence to 16 new markets across North America. Equinix will integrate Switch and Data’s data center business and operations, including the company’s 34 data centers in 22 markets in the U.S. and Canada. The acquisition will add more than one million gross square feet of data center capacity, bringing Equinix’s total global footprint to 79 data centers in 34 markets and more than six million square feet across the North American, European and Asia-Pacific markets. It will allow Equinix to immediately expand into new strategic markets, including Atlanta, Denver, Miami, Seattle and Toronto, as well as provide a platform for future expansion of Switch and Data assets.

The acquisition will help the companies’ customers respond to two broad market trends. The rapid growth of demand for online information is requiring companies to store and distribute larger volumes of latency sensitive assets and applications at the network edge, near local population centers. At the same time, the market compels companies to develop global aggregation and distribution strategies for their digital assets and applications. The transaction is expected to give Equinix customers broader access to local markets for their network edge deployments, and Switch and Data customers a comprehensive solution to their global data center needs. The customers of both companies will benefit from a stronger product portfolio and capacity pipeline in a market where demand continues to outpace supply, and from doing business with a partner that brings together the capabilities of two companies with strong reputations for operational excellence and high customer satisfaction.

“The strategic acquisition of Switch and Data by Equinix further strengthens Equinix’s position as the most comprehensive global data center services provider across North America, Asia-Pacific and Europe,” said Steve Smith, president and CEO of Equinix. “Our complementary business models, coupled with Switch and Data’s broad North American market coverage, provide a platform for strong growth as well as an opportunity to accommodate our customers’ demands for additional services.”

In a separate release:

FOSTER CITY, Calif. -- Equinix, Inc. (Nasdaq: EQIX), a provider of global data center services, today reported quarterly results for the quarter ended September 30, 2009.

Revenues were $227.6 million for the third quarter, a 7% increase over the previous quarter, and a 24% increase over the same quarter last year. Recurring revenues, consisting primarily of colocation, interconnection and managed services, were $218.3 million for the third quarter, a 6% increase over the previous quarter, and a 26% increase over the same quarter last year. Non-recurring revenues were $9.3 million in the quarter, consisting primarily of professional services and installation fees.

Cost of revenues was $126.0 million for the third quarter, a 6% increase over the previous quarter and a 15% increase over the same quarter last year. Excluding depreciation, amortization, accretion and stock-based compensation of $44.1 million for the third quarter, cost of revenues was $81.9 million for the third quarter, which the Company refers to as cash cost of revenues, a 9% increase over the previous quarter, and a 16% increase over the same quarter last year. Cash gross margins, defined as gross profit less depreciation, amortization, accretion and stock-based compensation, divided by revenues, for the quarter were 64%, down from 65% the previous quarter and up from 62% the same quarter last year.

Selling, general and administrative expenses were $54.6 million for the third quarter, a 1% increase from the previous quarter and a 6% increase over the same quarter last year. Excluding depreciation, amortization and stock-based compensation of $15.0 million for the third quarter, selling, general and administrative expenses were $39.6 million for the third quarter, which the Company refers to as cash selling, general and administrative expenses, a 3% increase over the previous quarter, and a 9% increase over the same quarter last year. Interest and other expenses, net, was $19.4 million for the quarter, a 54% increase over the previous quarter, and a 23% increase over the same quarter last year.

Net income for the third quarter was $18.8 million compared to net income of $17.4 million in the previous quarter and net income of $5.6 million in the same quarter last year. This represents a basic net income per share of $0.49 based on a weighted average share count of 38.8 million and a diluted net income per share of $0.47 based on a weighted average share count of 39.9 million for the third quarter of 2009.

Adjusted EBITDA, defined as income or loss from operations before depreciation, amortization, accretion, stock-based compensation expense, restructuring charges and acquisition costs, for the third quarter was $106.0 million, an increase of 7% from the previous quarter, and up 38% from the same quarter last year.

“Equinix delivered strong results in the third quarter, driven by solid demand and sound execution across all areas of the business,” said Steve Smith, president and CEO of Equinix. “As we have continued our disciplined expansion strategy throughout the challenging macroeconomic climate of the past several quarters, we are well positioned to continue building upon our global market leadership position, and we continue to see a strong opportunity in front of us as the economy begins to recover.”

Equinix Inc. (Nasdaq: EQIX)