Digital Realty Trust Inc. said Tuesday it has agreed to acquire Telx from private-equity firms Abry Partners and Berkshire Partners in a deal valued at $1.9 billion. The deal is expected to double Digital Realty's presence in the colocation business. "Telx's extensive interconnection ecosystem enables the exchange of information between communications service providers, enterprises, content providers and other entities with low latency and diverse connectivity across a global network and is expected to provide Digital Realty an opportunity for future growth," the company said in a statement. The deal is expected to close later this year and to boost 2016 financial metrics, said the statement. Digital Realty shares were not yet active in premarket trade, but are up 3.2% in the year so far, while the S&P 500 has gained about 2%.
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