QTS Realty Trust To Be Acquired By Blackstone Funds In $10 Bln Cash Deal

QTS Realty Trust (QTS), a provider of data center solutions, Monday said it has entered into a definitive agreement to be acquired by investment company Blackstone (BX) in an all-cash transaction valued at approximately $10 billion, including the assumption of debt.

In pre-market activity on NYSE, QTS Realty Trust shares were gaining around 21 percent, and Blackstone shares were up 1 percent.

Under the deal, Blackstone Infrastructure Partners, Blackstone Real Estate Income Trust, Inc. and other long-term perpetual capital vehicles managed by Blackstone will acquire all QTS Realty Trust stock for $78.00 per share.

The purchase price represents a premium of 21% to QTS’ closing share price as of June 4 and a 24% premium to the volume weighted average share price over the last 90 days.

The transaction was unanimously approved by the QTS Board of Directors and is expected to close in the second half of 2021. The deal is subject to approval by QTS’ stockholders and the satisfaction of other customary closing conditions.

The definitive merger agreement includes a 40-day “go-shop” period that will expire on July 17, subject to extension under certain circumstances. This permits QTS and its representatives to actively solicit and consider alternative acquisition proposals.

QTS has the right to terminate the definitive merger agreement with Blackstone to enter into a superior proposal subject to certain terms and conditions.

Following the deal closure, 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.

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