Digital Realty Trust to buy Interxion for $8.4B

Real estate investment trust Digital Realty has agreed to acquire data center services firm Interxion. Under the terms of the deal, Interxion shareholders will receive a 0.7067 Digital Realty stock per unit they own.

The transaction values Interxion at $93.48 per share or about $8.4 billion. Completion is subject to shareholder approval and customary closing conditions.

“We are excited to deliver this compelling opportunity for all our stakeholders while bolstering our ability to offer a truly global platform to serve our customers’ needs,” said Interxion CEO David Ruberg.

The merger is expected to create cost saving opportunities and enhance the combined entity’s long-term growth prospects. Digital Realty said it anticipates the deal to enhance the company’s access to capital.

Digital Realty CEO William Stein will serve as chief executive of the combined company, while Ruberg will head the company’s EMEA operations.

The REIT’s chief financial officer Andrew Power will serve as CFO of the combined company.  The board of directors of the combined company will comprise of nine Digital Realty members and one Interxion director.

Current Digital Realty chairman Laurence Chapman will also chair the combined company.

Following closure of the transaction, Interxion shareholders will own approximately 20% stake in the combined company.

BofA Securities, Credit Suisse and Morgan Stanley provided financial advice to Digital Realty, while Latham & Watkins and De Brauw Blackstone Westbroek served as legal advisors to Digital Realty. Guggenheim Securities advised Interxion on the financial matters and Debevoise & Plimpton and Greenberg Traurig acted as legal advisors.

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