Digital Realty swoops in to buy Interxion for $8.4bn
Digital Realty has pounced on Europe's largest colocation provider, Interxion, offering a premium price that bypasses a planned bidding process due to end in just two days (November 1).
Interxion has accepted a bid of $8.4 billion from the US giant. This will be the largest data center merger ever and is funded entirely by a stock swap.
This move will massively expand Digital Realty's European presence and continues the company's shift from wholesale colocation towards an interconnection-based model, intensifying its competition with rival colo, Equinix.
When complete, the deal would take Digital Realty to 260 data centers worldwide, which is more than Equinix's claimed 200. Although the two have a different spread of facilities: Digital has historically focused on building wholesale facilities to lease to hyper scale providers, while Equinix has concentrated on the enterprise market and interconnection services.
Interxion has 53 data centers, with a total of 290MW in 13 metro areas across Europe, while Digital's European holding is more concentrated in London. In combination, the two will have 93 facilities with a total of around 440MW, according to a presentation shown in a planned Digital Realty earnings call yesterday.
If the stock deal is completed as announced, Interxion shareholders will wind up with 20 percent of the combined company, and one member on Digital Realty's board.
The transaction values Interxion at $8.4bn, making for a share value of about $93.5 per ordinary share, considerably above the market value yesterday of $88.7.
Interxion shareholders will get about 0.7 of a Digital Realty share for each Interxion share.
The US buyer plans to keep the Interxion name for its European business, branding it "Interxion, a Digital Realty company". Interxion CEO David Ruberg will head the EMEA operation and report to Digital CEO Bill Stein.
Beginning as a wholesale provider, Digital focused on leasing facilities to hyper-scale clients whereas interconnection and enterprise colocation was offered by its rival Equinix. However, Digital Realty has now moved into interconnection after its acquisition of Telx for $1.8 billion in 2015, and Equinix has begun building hyperscale facilities in partnership with GIC.
The acquisition of Interxion would take this competition further, as Interxion has been steadily building a strong connectivity and enterprise business, with a particular grip on international fiber connections into the emerging hub city of Marseille in France.
As the market has grown and consolidated, Equinix has also been buying and building in Europe.
In 2015, Equinix bought Telecity for $3.6bn, frustrating a planned merger with Interxion. European regulators then intervened, ordering Equinix to sell off eight facilities, several of them in London. These were bought by Digital Realty for $867 million.
Interxion already had a plan to expand its capacity by 40 percent over the next 24 months, and Digital's access to capital will help continue to finance this growth, said the joint announcement. In Europe, the data center sector is growing so fast that new space is often hard to come by, according to real estate player and data center operator, CBRE.
The two companies plan to realize cost savings: despite nearly doubling its European capacity, the operation will go from 800 Interxion staff to 1,100 when it becomes a Digital Realty company, though the release predicts that, through expansion, all staff of the combined organizations will have "expanded career opportunities".
The deal is subject to approval by shareholders and regulators, but speakers on the earnings call expressed confidence this would be forthcoming, with the deal due to be completed in 2020.
- Contract (outside) Cyber Incident manager – current SC clearance ESSENTIAL
- United Kingdom
Contract (outside) Cyber Incident manager – current SC clearance ESSENTIAL Outside IR35 Client facing (Remote UK) with occasional site visit. Must have current Cyber incident response / management experience. Both proactive planning, escalation, coordination and coordinating response. Stakeholder engagement both technical and non technical teams. Prior experience with Technical incident / digital forensics / crisis management. Immediate role.
- Tenable Vulnerability Analyst - CONTRACT outside IR35. SC cleared.
- United Kingdom
6 month rolling contract Outside IR35- immediate start. Threat and Vulnerability Analyst. Tenable.sc experience needed. The ability to deploy agent, configure environments, run active and passive scans, produce reports and prioritise remediation activities based on output Current and ACTIVE SC clearance is required
- ForgeRock Consultant
- £600 per day
ForgeRock Consultant required for 6 Month Contract (with potential to extend) Outside IR35, Must be willing to work Europe hours (GMT+1) This is a remote position, Looking for a lead ForgeRock Technical Consultant with strong experience of ForgeRock to lead the next phase of deployment. Good understanding of ForgeRock Directory Services. · Responsible for the design and implementation of ForgeRock stack · Install and configure ForgeRock stack to meet customer authentication and authorization requirements, · Design and implement OAuth2 protocol using ForgeRock OpenAM, · Design and develop OpenAM custom authentication modules, · Configure ForgeRock stack to protect RESTful API, · Troubleshoot and support ForgeRock IAM stack. · Designed and developed Restful APIs, This is a great project with an expanding ForgeRock Partner, where you will get to work on some high level deployment projects We are looking for someone with the above experience, who is comfortable hitting the ground running and taking on the reins mid project
- Network Security Engineer
- €550 a day
German- based contract opportunity This is an onsite based position, we would need the Network Security engineer to be able to work on the client site 5 days a week Seeking an experienced Network Security Engineer for a leading technology company. Strong expertise in firewall/IPS solutions, proxy solutions, and certificate management is required. Good hands-on experience in networking and web-related technologies necessary. Strong problem-solving skills and the ability to work under pressure are essential. we are looking for a Network Security Engineer with the following experience: · Expertise in Administration, Management & Troubleshooting of Firewall / IPS solutions / Proxy solutions/Certificate Management Solutions · Good Hands-on Experience on security devices (PaloAlto/ /McAfee Proxy/CISCO ISE/Certificate Management) · Good Hands-on Experience in Networking with skills of switching, routing & wireless Technologies · Familiarity with web related technologies (Web applications, Web Services, Service Oriented Architectures) and of network/web related protocol · Configuration of NAT / PAT, firewall policies, profiling, objects, AD-Integration, backup – restore · Knowledge of Subnetting TCP/IP Communication, VLSM Configuration of VLAN VTP · Configuration of Routing Protocols e.g. RIPv1 & v2, OSPF, EIGRP, BGP Knowledge of standard and extended ACL 12 month contract