Digital Realty has just entered into a definitive agreement to acquire European data center giant Interxion in an $8.4 billion deal.

The transaction which includes debts, values Interxion at $93.48 per share, a 5.4% premium to the stock’s close on Monday ($88.67). The acquisition will push Digital Realty into becoming the second largest data center provider in Europe, after Equinix.

“The transaction is expected to be accretive to the long-term growth trajectory of the combined organization, and to establish a global platform that we believe will significantly enhance our ability to create long-term value for customers, shareholders and employees of both companies,” said A. William Stein, Digital Realty Chief Executive Officer.

Interxion’s European business currently consist of 53 carrier and cloud neutral facilities across 11 countries and 13 metro areas including Frankfurt, Amsterdam, Paris and Interxion’s Internet Gateway in Marseille which controls access to over a dozen submarine cables linking Europe to Africa, the Middle East, and Asia.

Interxion also has a large pipeline of data center development projects which are currently under construction, with over $400 million invested to date and a total expected investment of approximately $1 billion.

The most recent of such projects is the €140 million ($155.6M) World War II bunker conversion in Marseille, France. All current projects represent roughly a 40% expansion of Interxion’s standalone critical load capacity and are expected to be completed over the next 24 months.

“We are excited to deliver this compelling opportunity for all our stakeholders while bolstering our ability to offer a truly global platform to serve our customers’ needs,” said David Ruberg, Interxion Chief Executive Officer. 

“As part of Digital Realty, stakeholders will have the opportunity to continue to reap the benefits of the value that we have created via the communities of interest approach in our carrier and cloud-neutral European data center portfolio.  They will also be able to participate in the value created by extending our approach across Digital Realty’s global footprint, complementary customer base and significant presence in the Americas, EMEA and Asia Pacific.”

The transaction has been approved by the boards of directors of both Digital Realty and Interxion. At the close of deal in 2020, the company will be rebranded as “Interxion, a Digital Realty company” and Stein will serve as CEO of the combined company while Ruberg will serve as the Chief Executive of the combined company’s Europe, Middle East & Africa (EMEA) business for about a year.