US-based data centre operator Digital Realty has agreed to acquire European rival Interxion for USD 8.4 billion. The deal gives the group an immediate European footprint, with Interxion's 53 data centres in 11 countries adding to Digital Realty's recently opened sites in Dublin and London.
Under the terms of the agreement, Interxion shareholders will receive 0.7067 Digital Realty shares per Interxion share. The transaction values Interxion at USD 93.48 per ordinary share, or USD 8.4 billion in total including debt. The terms give Interxion shareholders around 20 percent of the merged company and one seat on the ten-member board.
Digital realty's CEO, CFO and chairman will remain in place. Interxion's CEO David Ruberg has agreed to tender his 1.3 percent stake in the company to Digital Realty. He will remain on as head of the group's EMEA business, which will be branded “Interxion, a Digital Realty company”.
Digital Realty said it expects cost savings from integrating the two companies. The size and scale of the combined company is expected to produce a highly efficient cost structure and industry-leading EBITDA margins. Upon closing, the transaction is expected to enhance the combined company’s long-term growth prospects, building on Interxion's growth plans, and is expected to improve its cost of and access to capital.
The takeover has been approved by both boards. The deal is expected to close in 2020, subject to approval by shareholders of both companies.
