Equinix agrees to buy Telecity Group for 2.35 bln pounds

LONDON, May 29 (Reuters) - U.S. data centre company Equinix Inc said on Friday it had agreed to buy British peer Telecity Group (LSE: TCY.L - news) in a deal worth 2.35 billion pounds ($3.60 billion), creating the largest data centre player in Europe.

Equinix (NasdaqGS: EQIX - news) said the deal would see each Telecity Group shareholder receive 572.5 pence in cash for each share, a 27.3 percent premium to the firm's closing price on May 6 before talks were announced, as well as 0.0327 new Equinix Shares.

Following completion of the deal Telecity Group shareholders will hold 10.1 percent of the combined company.

($1 = 0.6521 pounds) (Reporting by Neil Maidment. Editing by Jane Merriman)