Digital Realty is preparing to pay $8.4 billion for European colocation data center service provider Interxion, the company announced on Oct. 29. The companies are planning to combine their businesses to create a global data center colocation and interconnection provider.
Upon completion of the transaction, Interxion shareholders will own approximately 20 percent of the outstanding common stock of the combined company.
Interxion’s European business consists 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. The company has a robust pipeline of data center development projects currently under construction, with more than $400 million invested to date and a total expected investment of $1 billion. These projects are pre-let and are expected to be delivered over the next two years.
“This strategic and complementary transaction builds upon D