Digital Realty completes USD 1.8 billion acquisition of Ascenty

Data center firm Digital Realty have confirmed that their Brazilian SBU
Stellar Participações have acquired cloud provider Ascenty from Grey Hill Partners for USD 1.8 billion. With this acquisition, Digital Realty will be fortifying their footprint in the LATAM (Latin American) market to provide cloud-based services to enterprises.

According to market analysts, the LATAM market is experiencing an all time boom with respect to cloud services, with players like Google and Amazon setting data centers to support enterprises. They say that these enterprises are using the cloud to store business data and build applications to accelerate their workloads.

By acquiring Ascenty, Digital Realty claim that their presence in the LATAM market will be strengthened and position them as a go-to-data center provider. They believe that this data center can play a key role in elevating the digital transformation phase that enterprises in the South American market are undergoing currently.

A. William Stein, CEO at Digital Realty explained that this acquisition is a landmark transaction and will help the data center company to spread across the American market. They say that this acquisition will help Digital realty carve their brand’s identity in a market they are less known.

Explaining the financial terms of the deal, Digital Realty claim that transaction was initiated with USD 600 million in cash, with the remaining amount paid in debt. They say that the deal is in its final stages and is estimated to close by Feb 2019.

It will be interesting to see how Digital Realty makes the most of this acquisition, following Google’s expansion in LATAM late in 2018.