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QTS Pops On Report Blackstone Will Buy It For $6.7 Billion

Published 06/07/2021, 08:43 AM
Updated 06/07/2021, 08:45 AM
© Reuters.

By Dhirendra Tripathi

Investing.com -- Shares of QTS Realty Trust (NYSE:QTS) were up by more than a fifth of their Friday’s close after WSJ reported that Blackstone (NYSE:BX) will buy the data center operator for $6.7 billion and take it private.

The investment giant’s infrastructure unit, Blackstone Infrastructure Partners, together with its nontraded real-estate investment trust, known as BREIT, have agreed to pay $78 a share for QTS, the WSJ report said.

QTS shares touched $78.30 in premarket trading. The announcement of the deal will be made today, WSJ said.

Including the assumption of QTS’s existing debt, the transaction is valued at about $10 billion.

The report said the private equity giant plans to hold on to its QTS investment for a period longer than the usual and to continue to expand its capabilities.

Blackstone’s latest pursuit comes as a result of a boom in the business of data center operators, an outcome of a boom in demand for digital services as more companies and individuals opt for a hybrid model of work.

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