US-based co-location services firm Digital Realty have acquired data center provider Ascenty in a USD 1.8 billion deal. As per the terms of the acquisition deal, Digital Realty will be fortifying their data centre prowess as well as expand their presence in the Brazilian and greater LATAM (Latin American) market.
Digital Realty claim that the enterprise market in LATAM is undergoing a major change with technology and cloud-based startups coming to the fore. They say that with such enterprises emerging in the market, data center as a business is most likely to grow since more enterprises will be hosting their workloads.
By acquiring Ascenty, Digital Realty say that they will be gaining access to the developing enterprise market of LATAM. They also added that Digital Realty will be fortifying their co-location and data center services to expand their footprint in the region.
Speaking about the acquisition, Bill Stein, CEO at Digital Realty, commented:
We expect this acquisition will further accelerate our growth while enhancing our ability to support our customers’ digital transformation across the globe.
This acquisition advances our strategy of sourcing strategic and complementary assets to strengthen and diversify Digital Realty’s data center portfolio and expand our product mix and global footprint.
Ascenty claim that with this acquisition, they will be investing in their 14 hubs located across Latin America. They also added that this move will help the data center provider to facilitate a complete spectrum of cloud-based services as well.
Chris Torto, CEO at Ascenty, commented:
We’re delighted to join Digital Realty’s global platform and partner with Brookfield to provide our customers access to one of the largest networks of interconnected data centers in the world.
Our combined platform will be uniquely positioned to provide our customers the full spectrum of data center solutions along with the ability to support their growth on a global basis.
In closing, Digital Realty said that the acquisition will close by the end of Q4 2018. It will be interesting to see the turn of events in the data center market in LATAM with this move following Google’s USD 140 million expansion last week.