Blackstone REIT and Blackstone Infrastructure Partners to Acquire Data Center REIT
June 7, 2021 | S&P Global Market Intelligence
The Blackstone Group Inc. funds reached an agreement to acquire data center real estate investment trust QTS Realty Trust Inc. in a $10 billion transaction, including the assumption of debt.
Blackstone Infrastructure Partners LP, Blackstone Real Estate Income Trust Inc. and other long-term perpetual capital vehicles managed by Blackstone will acquire all outstanding shares of common stock of QTS for $78.00 per share in cash. The purchase price reflects a 21% premium to the shares’ June 4 closing price.
The agreement includes a 40-day go-shop period expiring on July 17, subject to extension. During the period, QTS is allowed to actively solicit and consider alternate acquisition proposals and terminate the agreement with Blackstone in favor of a superior proposal.
The Blackstone acquisition is expected to close in the second half, subject to approval by QTS’ stockholders and the satisfaction of other customary closing conditions. Following the acquisition, QTS will be delisted from the New York Stock Exchange and will be jointly owned by Blackstone Infrastructure and Blackstone REIT. The company will continue to be headquartered in Overland Park, Kan., with its senior management team continuing to lead the business.
Jefferies LLC and Morgan Stanley & Co. LLC are financial advisers to QTS, and Hogan Lovells US LLP and Paul Weiss Rifkind Wharton & Garrison LLP are acting as legal counsel.
Citigroup Global Markets Inc., Barclays, Deutsche Bank Securities Inc., Goldman Sachs & Co. LLC and J.P. Morgan Securities LLC serve as financial advisers to Blackstone, and Simpson Thacher & Bartlett LLP is acting as its legal counsel.
Source:Â S&P Global Market Intelligence
