8-KAcquisitions & DispositionsOther EventsExhibits & Filings

DIGITAL REALTY TRUST, INC. 8-K Report, Acquisition Completed (Oct 9, 2015)

Filed October 9, 2015For Securities:DLRDLR-PJDLR-PKDLR-PL

Summary

Digital Realty Trust, Inc. (DLR) has officially completed its acquisition of Telx Holdings, Inc. for approximately $1.886 billion. This strategic move significantly expands DLR's footprint in the data center colocation and interconnection market, adding 20 facilities across 13 key North American metropolitan areas. The acquisition was funded through a combination of preferred stock issuance, new debt offerings, and the physical settlement of common stock forward sale agreements. This transaction positions DLR to capitalize on growing demand for digital infrastructure and enhanced connectivity solutions. Investors should note that Telx operates a substantial portfolio of data centers, a significant portion of which are leased from Digital Realty itself, highlighting the synergistic nature of this acquisition. The integration of Telx is expected to strengthen DLR's market position and enhance its service offerings, particularly in cloud enablement and interconnection services. Further pro forma financial information related to this acquisition is expected to be filed in an amendment to this report.

Key Highlights

  • 1Digital Realty Trust, Inc. completed the acquisition of Telx Holdings, Inc. for approximately $1.886 billion.
  • 2The acquisition significantly expands DLR's presence in the data center colocation, interconnection, and cloud enablement sectors.
  • 3Telx brings a portfolio of 20 data center facilities across 13 strategic North American metropolitan areas.
  • 4The purchase price was funded through a combination of preferred stock issuance, a $950 million notes offering, and proceeds from common stock forward sale agreements.
  • 5Telx is a significant customer of Digital Realty, leasing more than half of its facilities from the company.
  • 6The acquisition is expected to enhance DLR's market position and service offerings in critical digital infrastructure.
  • 7Pro forma financial information regarding the acquisition will be filed by amendment within 71 calendar days.

Frequently Asked Questions

This 8-K filing announces the completion of Digital Realty Trust, Inc.'s acquisition of Telx Holdings, Inc., providing details on the transaction, purchase price, and funding sources.

The acquisition was funded through a combination of capital raised from a preferred stock offering, a $500 million 3.400% Notes due 2020 and $450 million 4.750% Notes due 2025 issuance, and the physical settlement of common stock forward sale agreements which generated approximately $674.1 million.

Telx is a leading provider of data center colocation, interconnection, and cloud enablement solutions with 20 facilities in key North American markets. Its acquisition significantly expands Digital Realty's service offerings and market reach in these critical areas, creating potential synergies given Telx is already a major tenant of Digital Realty.

The filing states that pro forma financial information with respect to the Telx Acquisition will be filed by amendment as soon as practicable, but no later than 71 calendar days from the filing date of this report.