Blackstone to Acquire QTS Realty Trust in $10B All-Cash Deal

Blackstone has entered into a definitive agreement with QTS Realty Trust to acquire the latter in an all-cash transaction valued at approximately $10 billion, including the assumption of debt. 

QTS said Monday Blackstone will purchase all outstanding shares of common stock of the data center solutions provider for $78.00 per share.

“We see a significant market opportunity for growth as hyper-scale customers and enterprises continue to leverage our world-class infrastructure to support their digital transformation initiatives… We are confident this transaction is the right step to achieve our strategic objectives in our next phase of growth,” said Chad Williams, chairman and CEO of QTS.

The deal’s purchase price represents a premium of 21 percent to QTS’ closing share price as of June 4, and a 24 percent premium to the volume-weighted average share price over the last 90 days. The QTS board of directors unanimously approved the transaction, which is expected to close in the second half of 2021.

Blackstone’s expertise, resources and access to capital will help drive QTS’ growth and expand the reach of its data center offerings.

Subject to and upon completion of the transaction, QTS’ common stock will no longer be listed on the New York Stock Exchange. QTS will be jointly owned by Blackstone Infrastructure Partners and Blackstone Real Estate Income Trust.

“We are focused on investing in assets that are benefiting from strong, secular tailwinds, such as the rapid digitalization of data. QTS is a leading provider of data center solutions with a portfolio of high-quality assets in desirable markets, positioning it well to capitalize on these powerful trends in the data center space,” stated Tyler Henritze, head of Acquisitions Americas for Blackstone Real Estate.

“We believe the vast expertise across our business will enable the QTS platform to succeed over the long-term,” Henritze concluded. 

QTS provides secure, compliant infrastructure solutions, robust connectivity and premium customer service to leading hyperscale technology companies, enterprises and government entities.