Digital Realty Completes Its Acquisition of InterXion

Interxion data center

Digital Realty (NYSE: DLR), a global provider of cloud and carrier-neutral data center, colocation and intra-connectivity solutions, has completed its previously announced acquisition of InterXion.

A. William Stein
“This powerful merger builds on Digital Realty’s well-established foundation to meet market demand for colocation, scalability and hyper-scale requirements in the Americas, EMEA and the Asia-Pacific region,” said A. William Stein, Chief Executive Officer (CEO) 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 – would be highly complementary to Digital Realty’s European data center footprint, given Digital Realty’s established presence in London and Dublin. The combination will create a leading pan-European data center presence, offering colocation services with “low-latency” access to approximately 70% of the GDP in Europe.

The acquisition was completed following the expiration of the related exchange offer that took place on 12 March 2020. This offered 70,862,736 shares of InterXion, representing approximately 92.3% of the total number of shares outstanding.

“We are pleased to conclude our merger with InterXion,” said A. William Stein, Chief Executive Officer (CEO) of Digital Realty. “This powerful merger builds on Digital Realty’s well-established foundation to meet market demand for colocation, scalability and hyper-scale requirements in the Americas, EMEA and the Asia-Pacific region, and leverages InterXion’s European expertise in colocation and intra-connectivity, strengthening the merged company’s capabilities to enable customers to solve a full spectrum of data center requirements on a global platform. The amalgamation of our two organizations creates a global platform that we believe will significantly enhance our ability to create long-term value for our customers, shareholders and employees of both companies.”

$1 billion Expected Data Center Investments

Interxion has a “robust” pipeline of data center development projects currently under construction, with over $400 million invested to date and a total expected investment of approximately $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.

Treatment of Unquoted Shares of InterXion

As less than 95% of InterXion’s outstanding shares were acquired in the exchange offer, non-offering holders of InterXion shares will receive Digital Realty ordinary shares (and/or cash instead of Digital Realty’s fractional ordinary shares) in accordance with a liquidation distribution, which is usually subject to 15% Dutch dividend withholding tax.

In addition, shares held by non-offering InterXion shareholders will no longer be negotiable on a stock exchange and will be subject to transfer restrictions, including obtaining a Dutch notarial deed of transfer.

Digital Realty supports the data center, colocation and intra-connectivity strategies of customers in the Americas, EMEA and APAC, ranging from cloud and information technology services, communications and social networking to financial services, manufacturing, energy, healthcare and consumer products.