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Digital Realty to buy Telx for USD 1.9 bln
2015-07-15 09:11:00| Telecompaper Headlines
(Telecompaper) Digital Realty Trust, a provider of data centre and colocation products, has entered into a definitive agreement to acquire US data centre operator Telx from private equity firms ABRY Partners and Berkshire Partners in a transaction valued at USD 1.886 billion. Digital Realty said the deal will double its footprint in the colocation business and provide customers with access to a leading interconnection platform. At end March, Telx managed 1.3 million square feet of data centre space operating out of 20 facilities across the US, of which two are Telx-owned, 11 are leased from Digital Realty, one is partially sub-leased from Digital Realty and an unrelated third party, and six are leased from third parties. In order to help fund the acquisition, Digital Realty has priced a public offering of 10.5 million shares at USD 68.00 per share. The offering is expected to close on 20 July, subject to customary closing conditions, with BofA Merrill Lynch, Morgan Stanley, Citigroup and Credit Suisse as joint book-running managers.
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Category:Telecommunications