QTS Realty Trust

History

2021: Blackstone Group bought QTS Realty Trust for $10 billion

In early June 2021, the Blackstone Group investment company acquired the QTS Realty Trust data center network operator for approximately $6.7 billion. Taking into account the volume of debt of QTS, the full amount of the transaction will be about $10 billion.

The investment giant's infrastructure division Blackstone Infrastructure Partners, along with its real estate investment trust known as BREIT, agreed to pay $78 for each QTS share. Such a price is a premium of 21% to the price of QTS shares at the time of closing on June 4, 2021 and a surcharge of 24% to the weighted average price for the 90 days that preceded the announcement of the transaction.

Network of data centers in the USA and Europe QTS Realty Trust sold for $6.7 billion

QTS is a real estate investment fund that owns over 7 million square feet of space in 28 data centers in North America and Europe. QTS clients include large software and social media development companies, as well as government agencies that use data centers for secure data storage and processing.

Blackstone's new approach to investing under President Jonathan Gray has led the company to invest heavily in fast-growing areas of the economy, including technology companies and e-commerce firms. The purchase of QTS will open Blackstone access to another fast-growing sector, because data use continues to grow rapidly, especially amid the pandemic. According to WSJ sources familiar with the situation, the company does not plan to quickly sell QTS, unlike regular private equity investments, and intends to continue to expand its capabilities and reach through a new acquisition. It is known that after the completion of the transaction, Blackstone plans to delist and make QTS a private company.^[1]

Notes