Blackstone funds to acquire QTS Realty Trust
Data center services provider QTS Realty Trust (NYSE: QTS) has agreed to be acquired by Blackstone (NYSE: BX), via Blackstone Infrastructure Partners, Blackstone Real Estate Income Trust, Inc. and other long-term perpetual capital vehicles Blackstone manages. The agreement calls for Blackstone to pay $78.00 per share in cash for all outstanding shares of QTS Realty common stock, making the deal worth a total of approximately $10 billion, including the assumption of debt. The QTS Realty board has approved the purchase, which is expected to close in the second half of this year.
The price represents a premium of 21% to QTS Realty's closing share price as of June 4, 2021, and a 24% premium to the volume weighted average share price over the last 90 days. The agreement includes a 40-day "go-shop" period that will expire on July 17, 2021, subject to extension under certain circumstances. The parties did not say whether QTS Realty would have to pay a penalty fee if it ultimately accepted a superior offer.
QTS provides data center services via more than 7 million square feet of owned mega-scale data center space in North America and Europe (see, for example, "QTS expanding metro Atlanta data center campus"). The two parties say the acquisition will accelerate QTS Realty's growth and help expand the reach of its operations to support new and existing customers. The company will maintain its headquarters in Overland Park, KS, as well as its senior management team.
"QTS is powered by its people and continues to set a new standard for service delivery in the data center industry," said Chad Williams, chairman and CEO of QTS. "We see a significant market opportunity for growth as hyperscale 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. I want to thank each of our QTS employees for their continued dedication to a culture of service to others, which has positioned QTS to enter into this transformative transaction."
"We are delighted to back QTS and its world-class management team as they continue to scale the company to meet the rising demand for data centers. QTS aligns with one of Blackstone's highest conviction themes – data proliferation – and the required investment makes it well suited as a long-term holding for our perpetual capital vehicles. We are committed to a strong, lasting partnership, leveraging Blackstone's scale, reach, resources and access to capital to drive long-term growth at QTS," added Greg Blank, senior managing director of Blackstone Infrastructure Partners.
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Stephen Hardy | Editorial Director and Associate Publisher, Lightwave
Stephen Hardy is editorial director and associate publisher of Lightwave and Broadband Technology Report, part of the Lighting & Technology Group at Endeavor Business Media. Stephen is responsible for establishing and executing editorial strategy across the both brands’ websites, email newsletters, events, and other information products. He has covered the fiber-optics space for more than 20 years, and communications and technology for more than 35 years. During his tenure, Lightwave has received awards from Folio: and the American Society of Business Press Editors (ASBPE) for editorial excellence. Prior to joining Lightwave in 1997, Stephen worked for Telecommunications magazine and the Journal of Electronic Defense.
Stephen has moderated panels at numerous events, including the Optica Executive Forum, ECOC, and SCTE Cable-Tec Expo. He also is program director for the Lightwave Innovation Reviews and the Diamond Technology Reviews.
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