The deal, which closed in an all-stock transaction and with an enterprise value of approximately $7.8 billion, was first announced in June 2017. It enhances the combined company's footprint and ability to serve its customers in the top US data centre metro areas. It has an equity market cap of approximately $24 billion and a total enterprise value of $33 billion.
It sees the addition of 12 purpose-built, in-service data centres expanding Digital Realty's hyper-scale product offering, improves its ability to meet the rapidly growing needs of cloud and cloud-like customers, and enables enterprise customers undertaking the shift to hybrid cloud.
"This highly strategic and complementary transaction further expands our product offering, and solidifies our blue-chip customer base," said A. William Stein, Digital Realty's chief executive officer.
"This deal is consistent with our investment criteria, and is likewise consistent with our strategy of offering our customers the most comprehensive set of data centre solutions, from single-cabinet colocation and interconnection, all the way up to multi-megawatt hyper-scale deployments."
Appointments
In conjunction with the merger closing, Digital Realty appointed former DuPont Fabros Board members Michael A. Coke and John T. Roberts, Jr. to Digital Realty's Board of Directors.
Coke is a highly respected real estate executive, having co-founded Terreno Realty Corporation, a publicly traded US industrial REIT, where he serves as president and as a member of the Board of Directors. Previously, he served as chief financial officer and executive vice president for AMB Property Corporation, a global developer and owner of industrial real estate focused on major hub and gateway distribution markets.
Roberts is also a veteran real estate investor, having held various positions at AMB Property Corporation, including president of AMB Capital Partners LLC, a subsidiary of AMB Property Corporation responsible for AMB's global private capital ventures.
Digital Realty was in the news last week as it announced that it was beginning to build a new 14MW data centre in the west of Sydney, its fourth in Australia.
