Some Switch & Data Facilities

Today, I picked up a few shares of Switch & Data Facilities Company, Inc. (Ticker: SDXC) at ~ $18.40, which is being acquired by Equinix, Inc (Ticker: EQIX) for ~ $19.06 per share. This is not a 100% cash deal since one can select 0.19 shares of Equinix or $18.06 in cash, but the cash portion is capped at 20% of the overall deal. So it’ll likely be 80% Equinix stock + 20% cash depending on the shareholders selection at time of closing. There is some anti-trust risk in this deal, which is evident in the wide spread. I believe this deal has a good chance of closing soon, but you never know when you’re dealing with anti-trust scrutiny. We should know very soon…