US data centre company Equinix is to acquire Telecity Group in a deal worth £2.35bn, creating a huge player in the market.
Telecity boasts customers including Spotify and Facebook, and claims to be the leading provider of "highly connected, carrier-neutral data centres in Europe".
A joint statement from the companies confirms the deal, highlighting the opportunities and benefits for stakeholders and shareholders.
Stephen Smith, chief executive and president of Equinix, explained that the acquisition will strengthen the firm's position in Europe and boost its cloud and network capabilities.
"The addition [of Telecity] will considerably strengthen Equinix's offering to customers in Europe and beyond, reinforcing us as a leader in global interconnection and data centres, as well as bringing the benefits of greater cloud and network density to our customers," he said.
"The transaction will allow Equinix to benefit from increased scale and to extend the global reach of our platform."
Equinix confcall 5/29 8:30am EDT to discuss announcement of recommended cash & share offer for Telecity. http://t.co/vh6GcFeO9A— Equinix, Inc. (@Equinix) May 29, 2015
John Hughes, executive chairman of Telecity has recommended that shareholders get behind the £2.35bn deal.
"This is testament to the hard work of all Telecity's employees. I am delighted that they now have the opportunity to be part of a global technology leader, led by Equinix's exceptional management team," he said.
"Through this transaction, our customers will have new global opportunities for their connected data centre requirements.
"The combination of Equinix and Telecity services and people will ensure the expanded business leads the way in the provision of highly connected data centre services for customers in Europe and all over the world."
Equinix operates over 100 data centres in five continents. IBM called on Equinix managed locations in Amsterdam, Dallas, Paris, Silicon Valley, Singapore, Sydney, Tokyo and Washington DC last year as the firm looked to expand its data centre cloud network.
Q3 losses reverse Q2 gains
FBI briefing US companies to dump Kaspersky, claiming intelligence prove it a 'threat to national security'
Kaspersky rejects FBI accusations that its products are a 'threat to national security'
But breached contractor says that it simply didn't have that much data
EE follows Three in threatening legal action against Ofcom - but for entirely different reasons