Equinix, Switch & Data Soar on Deal News

Shares of colocation providers Equinix and Switch & Data are sharply higher in today's trading after the United States Department of Justice told the companies it will allow their nearly $700 million merger to go forward.

Shares of colocation providers Equinix and Switch & Data are sharply higher in today's trading after the United States Department of Justice told the companies it will allow their nearly $700 million merger to go forward. After the close of business Friday, the DOJ told Switch & Data that it has closed its review of the antitrust implications of the deal, which combined two leading colocation and interconnection providers. The end of the DOJ review, which had been extended twice, had been the last major barrier to completing the transaction. Switch and Data and Equinix now expect the transaction to close on Friday, April 30.

Shares of Switch & Data (SDXC) are up $1.94 to $19.64, up nearly 11 percent on the session, while Equinix (EQIX) shares have gained $6.51 to $102.25, an improvement of about 6.8 percent. Since 80 percent of the payout to Switch & Data shareholders will be in Equinix shares, the rally in Equinix has a pass-through benefit for SDXC holders.

TAGS: Equinix
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