Digital Realty Completes £1.2bn Telx Data Centre Deal

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Data centre real estate giant picks up Telx in high-growth data centre expansion play

US data centre giant Digital Realty has completed its acquisition of Telx from private equity firms ABRY Partners and Berkshire Partners in a transaction valued at $1.886 billion (£1.21bn).

The acquisition, first announced in June, is said to double Digital Realty’s colocation footprint in the data centre market, with Realty’s CEO A. William Stein claiming the move is a “transformative acquisition”.

The deal comes hot on the heels of Equinix’s purchase of British data centre firm Telecity, announced in May.

Diversity

“This transformative transaction is consistent with our strategy of sourcing strategic and complementary assets to strengthen and diversify Digital Realty’s data centre portfolio and expand our product mix and presence in the attractive colocation and interconnection space,” said Stein.

“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.”

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.

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