Digital Realty (NYSE: DLR) is the world's largest wholesale colocation services and data center solutions provider with over 130 secure locations globally. The company acquires, repositions, and manages distressed web hosting facilities and key nodes of the internet backbone used by Fortune 1000 enterprises and internet enterprises.
- Investment Date: February 2001 to March 2007
- Status: Realized
- GI Role: Sole Investor
Value Creation Strategies
GI recognized the premium the public market assigned to an operating platform over a portfolio of stand-alone data center assets and as a result, acquired and consolidated a total of 21 data centers into one company, recruited a seasoned management team, and took the company public in November 2004. Over the course of GI's hold, the company's headcount expanded from four to 400 employees and revenue and profits grew 35% and 33%, respectively.
- Talent Development: Recruited seasoned management team.
- Organic Growth: Assisted company's expansion to new geographies (Europe) and new products (colocation)
- M&A: Grew asset base from the first building in Dallas to over 100 data centers located in 11 different countries
GI Partners sold its DLR shares over time and fully exited the investment in March 2007.
San Francisco, CA