DuPoint Fabros has data centers in California, Virginia and Chicago and the two companies expect the combination to help meet cloud-storage needs for customers, they said in the statement. The merger would allow the companies to save as much as $18 million in costs a year and is expected to be immediately accretive on closing.
“The transaction will help grow Digital Realty’s presence in strategic, high-demand metro areas with strong growth prospects, while achieving significant diversification benefits for DuPont Fabros’ shareholders,” the companies said. Dupont Fabros is expanding in cities including Toronto and Santa Clara, California.
The combined company is expected to have the highest EBITDA margin, a measure of profitability, of any U.S.-based publicly-traded data center REIT, according to the statement. The transaction, expected to close in the second half, is subject to shareholder approval.