DBRG is taking SWCH private? What now?Well, right after data center infrastructure stock SWCH announced solid 1st quarter earnings results, we get an announcement that it's going private. DBRG and IFM Investors are taking it private for $11 billion. Shareholders will get $34.25 per share on the transaction.
The price action gapped up to around that level and it will stay in this range until the transaction is complete and SWCH shares disappear from the exchanges.
This looks like a good thing for SWCH fundamentally, as the company continues to expand its data center capacity. You need investors to keep buying up land for data center infrastructure.
Solid Revenues and Net Income growth make the purchase a sweet deal for NYSE:DBRG and IFM, which is not publicly traded.
But don't go running to buy the REIT DBRG just yet. It's taking a dive like most other large caps. And an acquisition is a costly thing for any company--this can put a dent in the trend of the share price.
Like I've been writing throughout the index correction: WAIT for the bottom to develop. Most traders and investors are just impatient. If you'd just wait for it...
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