Digital Realty is outsourcing the operation of the facilities to the Tel(x) Group Inc., a company that focuses exclusively on operating such facilities. The agreement calls for the company to lease and be the exclusive manager of the Meet-Me-Rooms in 10 Digital Realty Trust facilities in the US.
Digital Realty CEO Michael Foust calls the company's Meet-Me-Rooms "an ancillary part" of its business. Outsourcing the operation of the facilities to a specialist will enhance the tenants' experience while allowing Digital Realty Trust to focus on its core business of building, owning and managing datacenter facilities.
The Meet-Me-Rooms being handed over to Tel(x) are located in Digital Realty datacenters in Weehawken, NJ (300 Boulevard East); Charlotte (113 North Myers St.); Miami (36 NE 2nd St.); Chicago (350 East Cermak Rd and 600 South Federal); Dallas (2323 Bryan St.); San Francisco (200 Paul Ave.); Los Angeles (600 West 7th St.); Santa Clara, CA (1100 Space Park Dr.); and Phoenix (120 East Van Buren St.).
The financial details of the agreement were not detailed in a press release or the associated SEC filing. A company representative did not return a Monday phone call seeking additional detail.
Also Monday, Digital Realty announced that Global Innovation Partners LLC has sold 3.3 million shares of Digital Realty common stock to Merrill Lynch & Co. The shares have been reoffered by Merrill Lynch & Co. to the public at approximately $36 per share. The company will not receive any proceeds from the sale of the shares. Shares of Digital Realty fell 67 cents to close at $36.55 on the New York Stock Exchange.
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