InterXion Holding NV In Stock-Swap Deal WIth TeleCity Group Plc

rose sharply after the Netherlands-based company signed a non-binding agreement to be acquired by TeleCity Group Plc in an all-stock transaction. Both companies provide data-center services in Europe. InterXion shareholders would receive nearly 2.4 TeleCityGroup shares for each InterXion share in the proposed deal, which is subject to due-diligence and other conditions. An estimated cash value of the transaction wasn't provided. InterXion has 69.16 million shares outstanding and changed hands recently at $31.90, up nearly 14 percent. TeleCity traded recently on the London Stock Exchange up nearly 15 percent at GBP975.44, or about $1,486.47 a share. The two companies agreed not to solicit or discuss alternative proposals until March 4, 2015, when a binding agreement is expected. InterXion shareholders would have 45 percent stake, and TeleCity shareholders 55 percent of the combined group, which would have a primary listing in London, with a New York listing contemplated. Current TeleCity Chairman John Hughes would be chairman of the combined group, with InterXion Chairman John Baker as deputy chairman. David Ruberg, currently chief executive of InterXion, would be named CEO of the combined group for a period of 12 months.