Shares of QTS Realty Trust (QTS) - Get QTS Realty Trust, Inc. Class A Report jumped over 20% in early trading Monday after the data-center operator said it was being acquired by investment giant Blackstone (BX) - Get Blackstone Inc. Report in a deal valued at roughly $10 billion.
Shares of the Overland Park, KS., company were rising 21.1% to $78.10 at last check. Shares of Blackstone were up 0.8% to $93.97.
Blackstone's infrastructure unit, Blackstone Infrastructure Partners, together with its nontraded real-estate investment trust, known as BREIT, agreed to pay $78 a share for QTS, according to a statement Monday.
The price represents a 21% premium to the closing share price of $64.49 a share for QTS on Friday, according to Dow Jones.
QTS operates data centers, with more than than 7 million square feet of space in North America and Europe. Its customers include big software and social-media companies as well as government entities that use the centers to securely store and process data.
The terms of the deal include the assumption of QTS’s existing debt, bringing the total value of the deal to approximately $10 billion.
"We are pleased to enter into this transaction with Blackstone, as it will deliver compelling, immediate and certain value to stockholders while positioning QTS to continue supporting customers’ expanding data center infrastructure needs,” said Philip Trahanas, lead director of the QTS Board of Directors, in a statement.
Blackstone said the deal is the right step in its next phase of growth.
"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," said Chad Williams, chairman and chief executive of QTS.
The transaction with Blackstone is expected to close in the second half of 2021, subject to approval by QTS’s stockholders and the satisfaction of other customary closing conditions.
After the deal is closed, QTS’s common stock will no longer be listed on the New York Stock Exchange.