NEW YORK: Investment firm Blackstone Group said on Monday (Jun 7) it would take data centre operator QTS Realty Trust Inc private in an all-cash deal worth about US$10 billion.
Blackstone Funds, the buyout firm's infrastructure unit along with its non-traded real-estate income trust and other long-term perpetual capital vehicles, will pay US$78 per share, which represents a premium of about 21 per cent to QTS' closing price on Friday.
Shares of QTS rose about 21 per cent to hit a record high of US$78.24.
The equity value of the deal stands at US$5.37 billion, according to Reuters calculations, based on 68.9 million outstanding shares, as of Apr 29.
A COVID-19 pandemic-led remote working environment boosted demand for cloud services, which are reliant on data centres. QTS has more than 7 million square feet of data centre space throughout North America and Europe.
The US$10-billion transaction, which is expected to close in the second half of this year, includes the assumption of the data centre operator's existing debt.
The deal also includes a 40-day go-shop period, which will let QTS solicit and consider other proposals, the companies said.
Jefferies and Morgan Stanley were financial advisers to QTS, while Citigroup Global Markets, Barclays, Deutsche Bank Securities and Goldman Sachs advised Blackstone.
The deal was first reported by the Wall Street Journal earlier in the day.