In the continuing merger of data centre companies, the next round is upon us. Digital Realty (DLR) and DuPont Fabros Technology (DFT) will become one, the acquisition creating a $7.6 billion enterprise. DFT shareholders will gain 0.545 DLR shares for each DFT share held. A press-release from DLR (Digital Realty To Merge With DuPont Fabros)
This merger provides DLR with more data centres in metro areas in Virginia, Chicago and Silicon Valley. Six DFT locations under construction will offer future capacity for new or expanding customers. It helps solidify DLRs hyper-scale datacentre offerings. It also provides more blue-chip customers and helps minimise the current DFT exposure to its three largest customers. And finally, the two key ones in any merger, synergies and benefits of scale.
“This strategic and complementary transaction significantly enhances Digital Realty’s ability to support the growth of hyper-scale users in the top U.S. data center metro areas, while providing meaningful customer and geographic diversification for DuPont Fabros. The combination is expected to generate both operating and financial benefits, and I’d like to congratulate Scott Peterson, Mark Walker and their team on successfully negotiating the largest transaction in our company’s history, a combination that we believe will enhance our ability to create significant long-term value for both sets of shareholders.” – A. William Stein, CEO, Digital Realty
“We are excited to deliver this compelling transaction to our shareholders and execute upon two of the strategic objectives embodied in our corporate vision – diversifying our customer base and expanding our geographic presence. As part of Digital Realty, our shareholders will continue to realize the benefits of our high-quality portfolio, with the added benefits of belonging to an even greater data center network with a truly global footprint and a well-diversified customer base. We also believe our shareholders will greatly benefit from Digital Realty’s investment grade balance sheet and more attractive cost of capital. We look forward to working closely with the Digital Realty team over the coming months to close the transaction and bring our two companies together.” – Christopher P. Eldredge, President and CEO, DuPont Fabros Technology