Blackstone to Acquire Data Center Operator QTS Realty Trust for $10B

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Blackstone Group is acquiring data center operator QTS Realty Trust as part of a $10 billion deal, underscoring its commitment toward investing in a growing commercial real estate sector, the companies jointly announced Monday.

The acquisition of QTS, which has more than 7 million square feet of data center space in its portfolio globally, involves Blackstone Infrastructure Partners and Blackstone Real Estate Income Trust. The merger agreement, which was unanimously approved by the QTS board of directors, is expected to close in the second half of 2021.

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“We are focused on investing in assets that are benefiting from strong, secular tailwinds, such as the rapid digitalization of data,” Tyler Henritze, head of acquisitions Americas for Blackstone Real Estate, said in a statement. 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.”

Upon completion of the transaction, QTS is planning to maintain its corporate headquarters in Overland Park, Kansas, according to firms’ joint announcement.

The deal includes a 40-day “go-shop” period, expiring July 17, in which QTS can consider other acquisition proposals. If the merger is completed, QTS will be taken private with its common stock no longer listed on the New York Stock Exchange.

“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,” Chad Williams, chairman and CEO of QTS, said in a statement. “We are confident this transaction is the right step to achieve our strategic objectives in our next phase of growth.”