Colocation services provider Digital Realty announced mid-July its intent to purchase the U.S.-based data center solutions company Telx for $1.9 billion. This news confirms rumors that have circulated for a few months.
The deal will effectively double Digital Realty's global data center footprint. Telx manages 1.3 million square feet of data center real estate from 20 buildings around the U.S., including some facilities that are already owned by Digital Realty. Telx's facilities are strategically placed and include a New Jersey data center, New York data center and a Santa Clara data center.
"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," said A. William Stein, CEO of Digital Realty. "The fact that more than half of Telx's 20 facilities are run out of Digital Realty properties further highlights the strategic fit as well as the potential incremental revenue opportunities we expect to be able to pursue as one company on a global basis."
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