Digital Realty Buys Telx for $1.9 Billion, Adds Data Centers

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Digital Realty Trust Inc. agreed to buy Telx from private-equity owners ABRY Partners and Berkshire Partners in a deal valued at about $1.9 billion to add data centers.

The purchase will be financed in part by an unsecured term loan of $1.85 billion, San Francisco-based Digital Realty said in a statement Tuesday. At the end of March, Telx managed 1.3 million square feet (121,000 square meters) of data-center space in 20 facilities across the U.S.

The acquisition “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,” Chief Executive Officer A. William Stein said in the statement.

Data-center providers are combining as consumers and companies use more of their services to store information remotely and access it on mobile phones, tablets and computers. In May, Equinix Inc. agreed to acquire Telecity Group Plc for 2.35 billion pounds ($3.7 billion) to create a trans-Atlantic data-center operator.

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