Digital Realty to Buy European Data Centers for $874 Million

Digital Realty Trust Inc., an owner of technology-related real estate, agreed to acquire eight data centers from Equinix Inc. for about $874 million.

The properties are located in London, Amsterdam and Frankfurt, the San Francisco-based company said in a statement on Monday. Digital Realty also granted Equinix, based in Redwood City, California, an option to purchase its facility in Paris and the related operating business for about $215 million.

"We have made several recent strategic investments in Europe, and this new portfolio -– which is concentrated in three of the most strategically important data center and interconnection hubs in Europe -– will immediately bring on board a large, diversified customer base,” A. William Stein, Digital Realty’s chief executive officer, said in the statement.

The deal follows Equinix’s acquisition of Telecity Group Plc. The transaction with Digital Realty is expected to close in the second half of 2016.

Digital Realty shares rose 2.7 percent to $96.91 at 10:35 a.m. New York time. Equinix climbed 0.6 percent to $346.46.

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