Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of U.K.-based Interxion Holding (NYSE:INXN) jumped 14% today after the data center company announced a nonbinding merger with TelecityGroup.

So what: The key driver behind the stock's move is undoubtedly the structure of the deal. Under the proposed transaction, Interxion shareholders would receive 2.3386 new Telecity shares for each Interxion share -- a per-share value, according to Interxion's press release announcing the merger, that indicates a 15% premium to Interxion's closing share price on Feb. 9 of $26.47.

Now what: Considering the structure of the deal, today's price spike is definitely warranted in the near term. But over the longer haul, investors will need to digest the implications of the merger.

According to Interxion, the merger will create value through synergy:

Incremental EBITDA from cost synergies and enhanced growth opportunities are estimated by TelecityGroup to be approximately £40m [($61 million)] per year and capital expenditure synergies are estimated by TelecityGroup to have a net present value of approximately £300m [($457 million)]. In total, this equates to a net present value of total synergies of approximately £600m [($914 million)]. In addition, TelecityGroup would expect substantial incremental benefits from technology, capital productivity and commercial synergies, as well as tax and other financial synergies; and ... [e]nhanced access to the capital markets and the opportunity of a lower cost of capital. Combined balance sheet strength and capital allocation discipline would enable the combined group to capitalise on future growth opportunities as well as deliver predictable capital returns to shareholders.

Given that proposed mergers don't always go through, shareholders shouldn't necessarily count on management's rosy outlook. That being said, the two companies' similarities and a quick read over the announced merger do not suggest any negative implications from the proposal.