Digital Realty and DuPont Fabros have completed their previously announced merger in an all-stock transaction with an enterprise value of approximately $7.8 billion. The addition of DuPont Fabros’ high-quality, purpose-built data center portfolio to Digital Realty’s existing footprint enhances the combined company’s ability to serve its customers in the top U.S. data center metro areas.
The merger also provides meaningful customer and geographic diversification for DuPont Fabros shareholders from the combination with Digital Realty’s global platform.
“This highly strategic and complementary transaction further expands our product offering, and solidifies our blue-chip customer base,” said A. William Stein, Digital Realty’s Chief Executive Officer. “This deal is consistent with our investment criteria, and is likewise consistent with our strategy of offering our customers the most comprehensive set of data center solutions, from single-cabinet colocation and interconnection, all the way up to multi-megawatt hyper-scale deployments.”
In conjunction with the merger closing, Digital Realty appointed former DuPont Fabros Board members Michael A. Coke and John T. Roberts, Jr. to Digital Realty’s Board of Directors. Coke is a highly respected real estate executive, having co-founded Terreno Realty Corporation, a publicly traded U.S. industrial REIT, where he serves as President and as a member of the Board of Directors. Previously, he served as Chief Financial Officer and Executive Vice President for AMB Property Corporation, a global developer and owner of industrial real estate focused on major hub and gateway distribution markets. Roberts is also a veteran real estate investor, having held various positions at AMB Property Corp., including President of AMB Capital Partners LLC, a subsidiary of AMB Property Corp. responsible for AMB’s global private capital ventures.