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A strong appetite for data is boosting the investor appeal of data centers in markets such as Northern Virginia

Blackstone Reaches $10B Deal to Acquire Data-Center Operator QTS

Blackstone said Monday it would acquire all outstanding common shares of data-center operator QTS Realty Trust for $78 per share in an all-cash transaction. Expected to close in the second half of 2021, the deal is valued at approximately $10 billion, including the assumption of debt.

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

Chad Williams, chairman and CEO of QTS, said, “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.”

Jefferies and Morgan Stanley are acting as financial advisors to QTS, and Hogan Lovells US and Paul, Weiss, Rifkind, Wharton & Garrison are acting as the REIT’s legal counsel to QTS. Citigroup Global Markets, Barclays, Deutsche Bank Securities, Goldman Sachs and J.P. Morgan Securities are acting as financial advisors to Blackstone, with Simpson Thacher & Bartlett serving as its legal counsel.

Upon completion of the transaction, it’s expected that QTS will continue to be led by its senior management team and maintain its corporate headquarters in Overland Park, KS.

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Inside The Story

QTSBlackstone’s Henritze

About Paul Bubny

Paul Bubny serves as Senior Content Director for Connect Commercial Real Estate, a role to which he brings 13-plus years’ experience covering the commercial real estate industry and 30-plus years in business-to-business journalism. In this capacity, he oversees daily operations while also reporting on both local/regional markets and national trends, covering individual transactions across all property types, as well as delving into broader subject matter. He produces 15-20 daily news stories per day and works with the Connect team and clients to develop longer-form content, ranging from Q&As to thought-leadership pieces. Prior to joining Connect, Paul was Managing Editor for both Real Estate Forum and GlobeSt.com at American Lawyer Media, where he oversaw operations at both publications while also producing daily news and feature-length articles. His tenure in B2B publishing stretches back into the print era, and he has served as Editor in Chief on four national trade publications. Since 1999, Paul has volunteered as the newsletter editor of passenger rail advocacy groups (one national, one local).

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