Digital Realty Trust agrees to acquire Telx in $1.9-bn deal
14 July 2015
Digital Realty Trust Inc has agreed to the acquisition of Telx from private-equity owners ABRY Partners and Berkshire Partners in a deal valued at about $1.9 billion.
The purchase would in part be financed with an unsecured term loan of $1.85 billion, according to San Francisco-based Digital Realty's statement today. The end of March had seen, Telx manage 1.3 million square feet (121,000 square meters) of data-centre space in 20 facilities across the US.
The acquisition ''is consistent with our strategy of sourcing strategic and complementary assets to strengthen and diversify Digital Realty's data center portfolio and expand our product mix,'' chief executive officer A William Stein said in the statement.
Data-centre providers were combining as consumers and companies used more of their services to store information remotely and access it on mobile phones, tablets and computers. Equinix Inc, in May, agreed to acquire Telecity Group Plc for £2.35 billion ($3.7 billion) for setting up a trans-Atlantic data-center operator.
According to Digital Realty, the acquisition was expected to double its footprint in the rapidly-growing colocation business.
The transaction would be expected to close later in the year and add to 2016 results, according to the company.