The proposed transaction includes Interxion shareholders receiving a fixed exchange ratio of 0.7067 Digital Realty shares per Interxion shares. This values Interxion at approximately $8.4 billion of total enterprise value.
At the completion of the transaction, the combined company will be branded “Interxion, a Digital Realty company” and will see Digital Realty’s current Chief Executive Officer, A. William Stein, serve as CEO and Interxion’s present Chief Executive Officer, David Ruberg, assume the role of Chief Executive of the company’s Europe, Middle East & Africa (EMEA) business.
Not only is this merge a compelling opportunity for stakeholders but the move also acts to strengthen the position of the combined company within the colocation data center market by building on the foundation that has already been laid by both Digital Realty and Interxion in their own rights.
“We’re excited about the opportunity that combining with Interxion will bring our customers by opening up a significant new footprint and interconnection capabilities that they can take advantage of around the world,” said Chris Sharp, CTO of Digital Realty.
“Coupled with our announcement last week of PlatformDIGITAL™, a new architectural platform roadmap and a suite of packaged new enterprise IT solutions, we are providing our customers with a unique way to deploy distributed infrastructure and scale their digital business with us globally,” said Sharp.
Strategically, the combined company aims to extend Interxion’s strong European presence, established relationships, and aptitude for creating valuable communities of interest across a far-reaching global footprint. Interxion’s European business is currently made up of 53 carrier and cloud neutral facilities in 11 European countries, and 13 key metro areas. [For more information, view Interxion’s profile on Cloudscene]
In addition, considering Digital Realty’s existing relationships with many of the leading cloud providers and global enterprises, along with its track record of hyperscale development, the combined company will be able to leverage strategic benefits from both sides. Digital Realty operates an ecosystem of 210+ data centers in 35 metros across 14 countries with a primary focus on empowering businesses with data center, connectivity, and cloud services. [For more information, view Digital Realty’s service provider profile on Cloudscene]
Enhancing Digital Realty’s enterprise solutions with extended presence in major European locations will aim to enable an ongoing connected campus strategy that delivers value to customers who are looking to looking to bolster their public and hybrid cloud architectural requirements.
The full scope of strategic and financial benefits associated with this deal includes:
- Globally expanding connected communities of interest
- Complementary European footprint and product offering
- Enhanced ability to service multinational customers on a global scale
- Combined development capacity providing significant embedded growth potential
- Creation of substantial anticipated cost efficiencies and financial benefits
For enterprises, it is said that this will translate to the efficient deployment of critical infrastructure and connection to a robust and growing universe of cloud platforms and connectivity service providers.
“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 David Ruberg, CEO of Interxion.
“…We look forward to working closely with Bill Stein and the entire Digital Realty team to consummate the transaction and combine the best of our companies to build the world’s preeminent data center provider,” said Ruberg.
Expected to close in 2020, the transaction has been approved by the Boards of Directors of both Digital Realty and Interxion and is subject to approval of Interxion and Digital Realty shareholders – along with other customary closing conditions.
News of the Digital Realty and Interxion agreement came just days prior to Digital Realty announcing that it had closed a $1 billion joint venture transaction with Mapletree.