Digital Realty and Interxion announced that they have entered into a definitive agreement to combine their businesses to create a leading global provider of data center, colocation, and interconnection solutions. Under the terms of the agreement, Interxion shareholders will receive a fixed exchange ratio of 0.7067 Digital Realty shares per Interxion share. Completion of the transaction is subject to customary closing conditions, including approval by shareholders of Interxion and shareholders of Digital Realty. 

Interxion’s European business (currently consisting of 53 carrier- and cloud-neutral facilities in 11 European countries and 13 metro areas including Frankfurt, Amsterdam, Paris and Interxion’s Internet Gateway in Marseille) is complementary to Digital Realty’s European footprint, given Digital Realty’s established presence in London and Dublin.  The combination will create a leading pan-European data center presence, offering consistent, high-quality services with low-latency access to approximately 70% of the GDP in Europe. 

Interxion has a robust pipeline of data center development projects currently under construction, with over US$ 400 million invested to date and a total expected investment of approximately US$ 1 billion.  These projects represent roughly a 40% expansion of Interxion’s standalone critical load capacity, are significantly pre-leased and are expected to be delivered over the next 24 months, representing a solid pipeline of potential future growth for the combined company.  In addition, the combined platform will maintain strategic land holdings in key growth metros across Europe, providing the potential for significant long-term development value creation. 

BofA Securities, Credit Suisse and Morgan Stanley are acting as financial advisors and Latham & Watkins LLP and De Brauw Blackstone Westbroek N.V. are acting as legal advisors to Digital Realty.  Guggenheim Securities is acting as financial advisor and rendered a fairness opinion to Interxion, and Moelis & Company also rendered a fairness opinion to Interxion.  Debevoise & Plimpton LLP and Greenberg Traurig, LLP (Amsterdam) are acting as legal advisors to Interxion.