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 $78 per share, which represents a premium of about 21% to QTS’ closing price on Friday.
Shares of QTS rose about 21% to hit a record high of $78.24.
The equity value of the deal stands at $5.37 billion, according to Reuters calculations, based on 68.9 million outstanding shares, as of April 29.
A COVID-19 pandemic-led remote working environment boosted demand for cloud services, which are reliant on data centers. QTS has more than 7 million square feet of data center space throughout North America and Europe.
The $10-billion transaction, which is expected to close in the second half of this year, includes the assumption of the data center operator’s existing debt.
The deal was first reported by the Wall Street Journal earlier in the day.
(Reporting by Chavi Mehta in Bengaluru; Editing by Amy Caren Daniel)