Equinix Board of Directors Approves REIT Conversion
REDWOOD CITY, Calif., Dec. 23, 2014 /PRNewswire/ -- Equinix, Inc. (Nasdaq: EQIX), the global interconnection and data center company, today announced that its board of directors ("Board") unanimously approved Equinix's conversion to a real estate investment trust ("REIT") for federal income tax purposes effective for its taxable year commencing January 1, 2015. As such, Equinix will move forward with its conversion plan and will begin its first day as a REIT on January 1, 2015.
As previously announced, as part of its REIT conversion plan, Equinix is seeking a private letter ruling ("PLR") from the U.S. Internal Revenue Service ("IRS") related to numerous technical tax issues. Equinix has not received its PLR from the IRS, but, based on existing legal precedent, opinions of counsel and the fact that many other data center companies currently operate as REITs, Equinix believes that it will qualify for taxation as a REIT and that it will receive a favorable PLR, if not by the end of the year, then early in 2015.
"We are excited to announce the Board's approval of Equinix's REIT conversion effective January 1, 2015," said Steve Smith, president and CEO of Equinix. "We are pleased with our current business momentum, and the REIT structure positions us well to continue to deliver profitable global growth, while providing world-class facilities and services to our customers through Platform Equinix."
Equinix, Inc. (Nasdaq: EQIX), connects more than 4,500 companies directly to their customers and partners inside the world's most networked data centers. Today, businesses leverage the Equinix interconnection platform in 32 strategic markets across the Americas, EMEA and Asia-Pacific. http://www.equinix.com/.
This press release contains forward-looking statements regarding the receipt of a PLR from the IRS that involve risks and uncertainties. Actual results may differ materially from expectations discussed in such forward-looking statements. In this regard, Equinix cannot provide assurance that the IRS will ultimately provide it with a favorable PLR or as to the timing of receipt of a favorable PLR. In addition, see Equinix's recent quarterly and annual reports filed with the Securities and Exchange Commission, copies of which are available upon request from Equinix. Equinix does not assume any obligation to update the forward-looking information contained in this press release.
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SOURCE Equinix, Inc.
Released December 23, 2014