Digital Realty, a leading global provider of data center and colocation solutions has entered into an agreement to acquire Telx, a provider of data center colocation, interconnection and cloud enablement solutions in a deal that is valued at $1.886 billion. The combination is expected to double Digital Realty's footprint in the rapidly-growing colocation business, as well as provide Digital Realty customers access to a leading interconnection platform.
According to Digital Realty, Telx's extensive interconnection ecosystem enables exchange of information between communications service providers, enterprises, content providers and other entities with low latency and diverse connectivity across a global network and is expected to provide Digital Realty an opportunity for future growth.
A. William Stein, Digital Realty's Chief Executive Officer
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. 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.
Chris Downie, Chief Executive Officer of TelxCrowdStrike
We are excited to join Digital Realty and become part of a much larger global data center services platform. We look forward to working with the Digital Realty team to extend a broader, enhanced data center solution to our collective customers. The combination of Telx's colocation and interconnection capabilities with Digital Realty's expansive wholesale platform provides greater flexibility and optionality for our customers and creates a global solutions provider covering wholesale customer applications and smaller performance-oriented deployments in select high-growth urban submarkets across the U.S.
