Digital Realty to acquire Telx

Digital Realty to acquire Telx

Expands datacentre offerings via $US1.89bn purchase

Digital Realty to acquire Telx

Digital Realty to acquire Telx

Global datacentre and colocation solutions provider, Digital Realty, will acquire US datacentre, colocation and interconnection company,Telx, from private equity firms ABRY Partners and Berkshire Partners in a $US1.886 billion transaction.

The partnership is expected to double Digital Realty’s footprint in the colocation business and customers will have access to Telx’s extensive interconnection platform.

Telx managed 1.3 million square feet of space across 20 datacentres as of March 31. Digital Realty leased 11 of its datacentres to Telx to manage as part of its portfolio.

Digital Realty chief executive, William Stein, said because more than half of Telx’s facilities currently run out of Digital Realty properties, the acquisition was a natural fit.

“The combination of Telx’s colocation and interconnection capabilities with Digital Realty’s wholesale platform provides greater flexibility and optionality for our customers,” Telx chief executive, Chris Downie, said.

In order to make the acquisition, Digital Realty approached lenders and received $US1.850 billion in an unsecured term loan bridge facility.

The purchase is expected to be completed later in the year.

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Tags colocationDigital RealtyTelxChris DownieWilliam SteinABRY PartnersBerkshire Partners

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