On Wednesday, Digital Realty Trust, Inc. (NYSE:DLR)’s shares inclined 1.80% to $65.00.
Digital Realty Trust, Inc. (DLR) is working on a bid to acquire private equity-owned data center peer Telx Group Inc for more than $2 billion, in a deal that would diversify its business, according to people familiar with the matter.
Digital Realty’s move is the latest sign of consolidation in the data center sector, as U.S. businesses’ burgeoning demand for data and video is fueling a revival in fiber optic services and data storage.
Digital Realty, a San Francisco-based real estate investment trust that rents out space that companies use for data centers, is one of several U.S. and international bidders for Telx, the people said this week. The auction for Telx, which is owned by ABRY Partners LLC and Berkshire Partners LLC, is at its early stages, the people added.
The sources asked not to be identified because the sale process is confidential. Telx, Digital Realty and Berkshire Partners declined to comment, while ABRY Partners did not right away respond to a request for comment.
Privately-held data center companies have been selling to larger publicly traded rivals in recent months, with Digital Realty rival QTS Realty Trust Inc buying Carpathia Hosting, fiber network company Zayo Group Holdings Inc buying Latisys and CyrusOne purchasing Cervalis.
Digital Realty Trust, Inc., a real estate investment trust (REIT), through its controlling interest in Digital Realty Trust, L.P., engages in the ownership, acquisition, development, redevelopment, and administration of technology-related real estate. It focuses on planned ally located properties containing applications and operations critical to the day-to-day operations of technology industry tenants and corporate enterprise datacenter users, counting the information technology departments of Fortune 1000 companies, and financial services companies.
PMC-Sierra Inc (NASDAQ:PMCS)’s shares gained 0.66% to $9.22.
ON.Lab declared that a team comprised of AT&T*, ONOS project, PMC-Sierra (PMCS) and Sckipio will showcase the first public demonstration of the Central Office Re-architected as Data Center (CORD) proof-of-concept (POC) at next week’s Open Networking Summit (ONS2015) in Santa Clara, Calif.
Many carriers in both the telecom and cable fields are espousing next generation architectures that borrow heavily from web-scale data centers and cloud providers. With this, they want to use SDN and NFV to transform their carrier functions into workloads that are hosted on common, commodity infrastructure. “CORD” refers to this approach of providing infrastructure-as-a-service and networking services as tenant applications for this infrastructure.
CORD combines SDN, NFV and cloud with commodity infrastructure and open building blocks to bring in data center economies of scale and cloud-like agility to service providers. The CORD solution POC spans the Telco Central Office, access counting Gigabit-capable Passive Optical Networks (GPON) and G.fast in addition to home/enterprise customer premises equipment (CPE).
CORD enables service providers to build an underlying common infrastructure with white boxes using ONOS (carrier-grade open source SDN Control Plane), OpenStack (virtual infrastructure administration), and XOS (an open source service orchestration/administration platform built on OpenStack) with a diversity of organizations building the services and solutions that ride above. In effect, this common infrastructure replaces the fragmented, non-commodity one in recently’s Central Offices where each site hosts more than 300 unique deployed appliances, each requiring a physical install and specialized administration.
PMC-Sierra, Inc. designs, develops, markets, and supports semiconductor solutions for communications network infrastructure equipment worldwide. Its semiconductor devices enable networking equipment primarily in three markets, counting storage, optical, and mobile networks.
At the end of Wednesday’s trade, KBR, Inc. (NYSE:KBR)‘s shares surged 0.89% to $20.35.
KBR, Inc. (KBR) declared it has agreed to sell its Building Group partner to Pernix Building Group, LLC, a partner of Pernix Group, Inc.
The sale of the Building Group comprises with the company’s restructuring plans which were declared at KBR’s Investor Day in New York last December.
The transaction’s price is $22 million, subject to working capital adjustments, with closing predictable by June 30, 2015. KBR anticipates to record a pre-tax gain of about $28 million in its second quarter 2015 financial results.
KBR, Inc. operates as an engineering, construction, and services company worldwide. The company operates through three segments: Technology & Consulting, Engineering & Construction, and Government Services. The Technology & Consulting segment offers various services and solutions, counting licensing, engineering and design, proprietary equipment, plant automation, catalysts, and related consulting services to hydrocarbons, chemicals, and fertilizer markets.
Invesco Mortgage Capital Inc (NYSE:IVR), ended its Wednesday’s trading session with 0.20% gain, and closed at $15.30.
One stock that might be an intriguing choice for investors right now is Invesco Mortgage Capital Inc. (IVR). This is because this security in the Real Estate Investment-Mortgage Trust space is seeing solid earnings estimate revision activity, and is in great company from a Zacks Industry Rank perspective.
This is important because, often times, a rising tide will lift all boats in an industry, as there can be broad trends taking place in a segment that are boosting securities across the board. This is arguably taking place in the Real Estate Investment-Mortgage Trust space as it presently has a Zacks Industry Rank of 64 out of more than 250 industries, suggesting it is well-positioned from this perspective, especially when contrast to other segments out there.
Meanwhile, Invesco Mortgage is actually looking pretty good on its own too. The firm has seen solid earnings estimate revision activity over the past month, suggesting analysts are becoming a bit more bullish on the firm’s prospects in both the short and long term.
Invesco Mortgage Capital Inc., a real estate investment trust, focuses on investing in, financing, and managing residential and commercial mortgage-backed securities and mortgage loans. It invests in residential mortgage-backed securities for which a U.S. government agency guarantees payments of principal and interest on the securities; residential mortgage-backed securities that are not issued or guaranteed by a U.S. government agency; commercial mortgage-backed securities; residential and commercial mortgage loans; and other real estate-related financing arrangements.
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