Prospectus Summary
The following summary is qualified in its entirety by the more detailed information and financial statements and notes thereto appearing elsewhere in this prospectus.
The Company
Overview
Equinix designs, builds and operates neutral Internet Business Exchange centers, or IBX centers, where Internet businesses place their equipment and their network facilities in order to interconnect with each other. Our neutral IBX centers provide content providers, application service providers and e- commerce companies with the ability to directly interconnect with a competitive choice of bandwidth providers, Internet service providers and site and performance management companies. Equinix IBX centers enable Internet companies to quickly, easily and privately interconnect with a choice of business partners and customers, providing them with the flexibility, speed and adaptability they need to accelerate business growth.
Equinix currently has IBX centers in the Washington, D.C. metropolitan area, the New York metropolitan area and in Silicon Valley. We intend to complete construction of five additional IBX centers and several expansion projects by May 2001, resulting in a total of eight IBX centers in the U.S. and Europe.
We were founded in June 1998. In April 1999, our first customer contract was signed and we began recognizing revenues in November 1999. We have not yet been profitable and expect to incur significant additional losses.
The Equinix Solution
Our IBX centers will provide environments that stimulate efficient business growth. We are able to provide the following key benefits to our customers:
. choice of product and service providers;
. opportunity to increase revenues and reduce costs;
. scalability; and
. reliability.
Recent Developments
On May 16, 2000, Peter F. Van Camp joined Equinix as our chief executive officer. Prior to joining Equinix, Mr. Van Camp was the president of the Americas region for UUNet, a division of WorldCom. Albert M. Avery, IV, one of our founders, will continue to act as our president and will assume responsibilities as our chief operating officer. Mr. Van Camp has also joined our board of directors.
On May 23, 2000, we entered into a purchase agreement regarding our purchase of real property in San Jose, California for approximately $82.0 million. The sale is scheduled to close on June 21, 2000, pending additional due diligence by us. We currently anticipate that a third party financier will purchase the property at the closing and then will lease this property back to us pursuant to a long-term lease. There can be no assurance that we will be able to secure this arrangement. If we are not able to secure this arrangement we have the option to purchase the property directly. However, we do not intend to do so at this time.
Equinix's headquarters are located at 901 Marshall Street, Redwood City, California 94063. Our phone number is (650) 298-0400.
Except as otherwise indicated, information in this prospectus is based on the following assumptions:
. conversion of all outstanding shares of preferred stock into common stock upon the closing of this offering;
. the filing of our amended and restated certificate of incorporation in the state of Delaware upon the closing of this offering; and . no exercise of the underwriters' over-allotment option.