Digital Realty to acquire 8 European data centers from Equinix

Digital Realty Trust, Inc. (NYSE: DLR), a global provider of data center, co-location and interconnection solutions, has entered into a definitive agreement to acquire a portfolio of eight high-quality, carrier-neutral data centers in Europe from Equinix, the company said.

The total purchase price is approximately USD874 million (before fees, closing costs and prorations), which represents a multiple of approximately 13 times the anticipated full-year 2016 portfolio EBITDA.

Digital Realty will acquire a fee interest in one data center in Amsterdam and will acquire leasehold interests in the other seven data centers, with a weighted-average remaining lease term of approximately 23 years, including the exercise of contractual extension options. In addition, several of the leased facilities are entitled to statutory rights that give the tenant the ability to renew upon lease expiration, subject to certain exceptions.

In connection with this transaction, Digital Realty has granted Equinix an option to acquire the company´s facility at 114 rue Ambroise Croizat in Paris and its associated business, for a purchase price of approximately USD215 million, before closing costs and prorations.

The portfolio of eight facilities contains approximately 213,000 net sellable square feet and 24.4 megawatts of IT load, serving a large base of over 650 blue-chip clients.

The European portfolio acquisition is expected to close in the second half of 2016 and is subject to customary closing conditions, including approval by the European Commission, as well as completion of the works council consultation process in the Netherlands.

Digital Realty Trust, Inc. supports the data center and colocation strategies of more than 1,000 firms across its portfolio of data centers located throughout North America, Europe, Asia and Australia.