QTS obtained in $10bn datacentre deal

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Investment agency, Blackstone, is hedging its bets on the growth in recordsdata processing skill that shall be induced by digitisation

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Printed: 08 Jun 2021 13: 00

Datacentre operator QTS Realty Have faith has been sold to funding agency Blackstone, in a deal valued at approximately $10bn. Blackstone talked about it would provide sources and consistent procure admission to to capital to reduction QTS’ growth and lend a hand develop the reach of its datacentre services and products, supporting fresh and present customers.

Greg Blank, senior managing director, Blackstone Infrastructure Companions, talked about: “We are satisfied to encourage QTS and its world-class management crew as they continue to scale the firm to fulfill the rising ask for datacentres.

“QTS aligns with one in every of Blackstone’s very most practical conviction themes – recordsdata proliferation – and the mandatory funding makes it acceptable as a lengthy-time interval preserving for our perpetual capital autos.”

The firm talked about it sees growth opportunities in the “rapid digitisation of recordsdata”, which requires elevated ranges of datacentre-essentially based mostly computing.

Upon completion of the transaction, the parties query that QTS will continue to be led by its senior management crew and reduction its company headquarters in Overland Park, Kansas.

Chad Williams, chairman and CEO of QTS, talked about: “We witness a significant market opportunity for growth as hyperscale customers and enterprises continue to leverage our world-class infrastructure to reduction their digital transformation initiatives.

“We are assured this transaction is the ethical step to compose our strategic targets in our subsequent section of growth. I desire to thank each and each of our QTS workers for his or her endured dedication to a culture of carrier to others, which has positioned QTS to enter into this transformative transaction.”

The deal is seen as the greatest acquisition of its form in the datacentre market. Per Synergy Analysis Group, sooner than this announcement, the greatest datacentre mergers and acquisition offers had been Digital Realty’s $8.4 billion acquisition of Interxion, Digital Realty’s $7.6bn acquisition of DuPont Fabros, and the acquisition of World Change by the Jiangsu Shagang Group of China, which changed into as soon as lastly valued at over $8bn in transactions that had been spread over three years.

“Given the explosion in the amount of recordsdata that is being generated and has to be processed, alongside with the ongoing growth in each and each enterprise and cloud markets, it is shrimp surprise that datacentres personal been this form of sizzling impress in the M&A enviornment,” talked about John Dinsdale, a major analyst at Synergy Analysis Group.

“The datacentre and colocation market has been constantly evolving over the years and this may perchance well simply continue. The nearly inexhaustible ask for datacentre skill has ended in a force to safe fresh sources of capital funding and there remains to be a lengthy checklist of appealing investors.”

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