Switch & Data Shareholders OK Equinix Deal
February 1st, 2010 By: Rich Miller
Shareholders of Switch & Data have voted to approve the company’s proposed acquisition by Equinix, the companies said Friday. Completion of the $700 million deal is delayed by pending approvals from federal antitrust regulators, and not likely to close until the second quarter. Switch and Data will announce the expected closing date in a press release five business days before the expected closing date.
Switch and Data (SDXC) recently moved to settle three lawsuits related to the sale to Equinix. A memorandum of understanding between Switch and Data and lawyers for plaintiffs would have all claims dismissed with prejudice in return for attorneys fees and costs, estimated at about $900,000.
“Switch and Data and the other defendants deny all of the allegations in the lawsuits and believe that the existing disclosures regarding the proposed merger are appropriate under the law,” the company said in an SEC filing. “Nevertheless, Switch and Data and the other defendants have agreed to settle the putative class action lawsuits in order to eliminate the risk, burden and expense of further litigation, to fully resolve all claims raised in the lawsuits, to permit the merger to be consummated without the risk of injunctive relief or delay, and to permit Switch and Data’s stockholders to receive the consideration provided for in the merger.”