QTS Realty Trust to Be Acquired by Blackstone Funds in $10 Billion Transaction

QTS Realty Trust to Be Acquired by Blackstone Funds:

QTS Realty Trust (NYSE: QTS) (QTS Company) and Blackstone (NYSE: BX) announced today that they have entered into a definitive agreement between Blackstone Infrastructure Partners, Blackstone Real Estate Income Trust, Inc., and other vehicles controlled by Blackstone Continuous Share. . will acquire all outstanding common stock of QTS Realty Trust for $ 78.00 per share in a cash transaction of approximately $ 10 billion1, including debt acceptance. The purchase price represents a premium of 21% over the closing price of the QTS stock on June 4, 2021, and a premium of 24% over the volume-weighted average share price over the past 90 days. The transaction was unanimously approved by the QTS board of directors and is expected to close in the second half of this year (2021).

Blackstone’s interest in acquiring QTS and its commitment to invest in its platform testify to the QTS team’s success in building a leading data center company. Blackstone’s expertise and consistent access to capital will support QTS growth and help expand the reach of its data center solutions that support new and existing customers. Following the transaction, the parties expect QTS to be led by its senior management team and remain headquartered in Overland Park, Kansas.

We are excited to enter this transaction with Blackstone as it will provide compelling, immediate, and guaranteed value to shareholders, enabling QTS to support customers’ growing infrastructure needs in the data center, said Philip Trahanas, CEO of the company. QTS card. The QTS board of directors is evaluating the company’s strategy and market opportunities to maximize shareholder value and we believe this transaction is achieving its goal.

QTS is driven by its people and continues to set a new standard for service delivery in the data center industry, said Chad Williams, President, and CEO of QTS. We see significant growth opportunities in the market as customers and high-value companies continue to use our world-class infrastructure to support their digital transformation initiatives. I would like to thank all of our QTS employees for their continued commitment to a culture of service to others with whom QTS is involved in this transformative transaction.

Terms of the transaction, timelines, and approvals

The final merger agreement provides for a 40-day period expiring on July 17, 2021, subject to renewal terms, allowing QTS and its representatives to actively seek and evaluate alternative offers. QTS reserves the right to terminate the final merger agreement with Blackstone in order to make a better proposal, subject to certain provisions of the final merger agreement. There is no assurance that this process will result in a better offer and QTS does not intend to disclose any development related to the go-shop process unless and until it determines that such disclosure is appropriate or otherwise necessary.

The Blackstone deal is expected to close in the second half of 2021, subject to QTS shareholder approval and other normal closing conditions.

QTS is jointly owned by Blackstone Infrastructure Partners and Blackstone Real Estate Income Trust (BREIT).

advisers

Jefferies LLC and Morgan Stanley & Co. LLC are financial advisors to QTS, Hogan Lovells US LLP and Paul, Weiss, Rifkind, Wharton & Garrison LLP are legal advisers to QTS. Citi-group Global Markets Inc., Barclays, Deutsche Bank Securities Inc., Goldman Sachs & Co. LLC, and JP Morgan Securities LLC act as financial advisors to Blackstone and Simpson Thacher and Bartlett LLP act as attorneys general.

Notice of Forward-Looking Statements

Certain statements in this report are forward-looking statements under federal security laws. Forward-looking statements refer to expectations, beliefs, projections, future plans and strategies, anticipated events or trends, and similar expressions relating to matters that are not historical facts. In some cases, you may recognize forward-looking statements.

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