Data centre real estate giant picks up Telx in high-growth data centre expansion play
Digital Realty is going ahead with its acquisition of Telx Group in a data centre deal valued at $1.886bn (£1.21bn), it was revealed today.
The deal comes hot on the heels of Equinix’s purchase of British data centre firm Telecity, announced in May.
“This transformative transaction 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 and presence in the attractive colocation and interconnection space,” said A. William Stein, Digital Realty’s CEO.
“Telx’s well-established colocation and interconnection businesses provide access to two rapidly-growing segments with long-standing customer relationships in top-tier metropolitan areas such as New York and Silicon Valley.”
Reuters first learned in April that Telx is mulling over a data centre sale, citing anonymous sources. ABRY Partners and Berkshire Partners, Telx’s private equity owners, were already in talks with investment banks to drum up financial advisors for the sale at that time.
As of March 31, 2015, Telx managed 1.3 million square feet of data centre space operating out of 20 facilities across the United States, 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.
“We are excited to join Digital Realty and become part of a much larger global data centre services platform,” said Chris Downie, CEO of Telx. The transaction is expected to close later in the year.