Digital Realty To Acquire Eight Premium European Data Centers From Equinix
The move is designed to expand Digital Realty's global footprint and strategic positioning in key European metro areas.
Digital Realty Trust, Inc. has announced that it has entered into a definitive agreement to acquire a portfolio of eight high-quality, carrier-neutral data centers in Europe, five in London, two in Amsterdam, and one in Frankfurt, from Equinix. The total purchase price is approximately $874 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.