Blackstone to Take QTS Private

A large chunk of data center assets are changing hands according to an announcement yesterday. QTS Realty Trust and Blackstone say they have entered into a definitive agreement under which Blackstone Infrastructure Partners, Blackstone Real Estate Income Trust, and other Blackstone ‘long term perpetual capital vehicles’ will be buying all of QTS’ outstanding shares for $78 apiece.

QTS operates 21 data centers across the United States as well as 2 over in Europe, both in the Netherlands. The deal will bring Blackstone’s expertise and resources to the table at QTS, as well as give QTS the flexibility to invest in its infrastructure beyond the short-term prying eyes of the public stock markets. The company has over the last few years invested significantly in its hyperscale offerings.

The deal overall is valued at about $10B including the assumption of debt, and represents a 21% premium to QTS’ stock price as of Friday, June 4. But there could still be some music left to write. The agreement includes a 40-day “go-shop” period during which QTS might solicit and consider alternative proposals. But, assuming Blackstone succeeds, the purchase is expected to close in the second half of 2021.

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Categories: Datacenter · Mergers and Acquisitions