Blackstone Funds’ $10 Billion Acquisition of QTS Realty Trust

Paul Hastings LLP advised Jefferies and Morgan Stanley on the deal, while Paul, Weiss advised QTS Realty Trust. Simpson Thacher represented Blackstone.

Jefferies and Morgan Stanley acted as financial advisors to QTS Realty Trust in Blackstone Funds’ definitive agreement to acquire QTS for $10 billion.

Under the terms of the transaction, Blackstone Infrastructure Partners, Blackstone Real Estate Income Trust (BREIT), Inc. and other long-term perpetual capital vehicles managed by Blackstone will acquire all outstanding shares of common stock of QTS Realty Trust for $78.00 per share.

The transaction is expected to close in the second half of 2021, subject to approval by QTS’ stockholders and the satisfaction of other customary closing conditions.

QTS, a Kansas-based REIT, owns more than seven million square feet of data-center space across 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 Paul Hastings team was led by Corporate partners Steve Camahort (Picture) and Frank Lopez, and included Tax partner Joseph Opich, and associate Evan Griffith.

The Paul, Weiss team included corporate partners Matthew Abbott, Scott Barshay, Cullen Sinclair, Caith Kushner and John Kennedy; tax partners Scott Sontag and Patrick Karsnitz; executive compensation partners Jarrett Hoffman, Lawrence Witdorchic and Jean McLoughlin, and counsel Meghan Fox; real estate partner Salvatore Gogliormella; intellectual property partner Claudine Meredith-Goujon; environmental counsel William O’Brien; and antitrust counsel Yuni Sobel and Marta Kelly.

The Simpson Thacher team included Brian Stadler, Anthony Vernace, Keegan Lopez, Beth DiSciullo and Molly Nelson (M&A); Scott Kobak, Whitney Salinas, Danielle Jackson, Sam Rudik, Laura Hsu, Gianna Ceophas and Lucas Fernandez-Rocha (Real Estate); Nancy Mehlman and Jodi Schneider (Tax); Andrew Blau, Greg Grogan, Joo Hyun Lee and Scott Schilson (Executive Compensation and Employee Benefits); Brian Gluck and Patrick Wolff (Credit); Jonathan Ozner, John Schueller and Katherine Draper (Capital Markets); Jon Lindabury, Caitlin Wood and Nathan Utterback (Derivatives); Parker Kelsey and Ben Wells (Funds); Lori Lesser and Melanie Jolson (Intellectual Property); and Adeeb Fadil and Noreen Lavan (Environmental). Summer associate Jacob Snider provided valuable assistance.

Involved fees earner: Steve Camahort – Paul Hastings LLP; Frank Lopez – Paul Hastings LLP; Joseph Opich – Paul Hastings LLP; Matthew Abbott – Paul Weiss Rifkind Wharton & Garrison; Scott Barshay – Paul Weiss Rifkind Wharton & Garrison; Meghan Fox – Paul Weiss Rifkind Wharton & Garrison; Salvatore Gogliormella – Paul Weiss Rifkind Wharton & Garrison; Jarrett Hoffman – Paul Weiss Rifkind Wharton & Garrison; Patrick Karsnitz – Paul Weiss Rifkind Wharton & Garrison; Marta Kelly – Paul Weiss Rifkind Wharton & Garrison; John Kennedy – Paul Weiss Rifkind Wharton & Garrison; Caith Kushner – Paul Weiss Rifkind Wharton & Garrison; Jean McLoughlin – Paul Weiss Rifkind Wharton & Garrison; Claudine Meredith-Goujon – Paul Weiss Rifkind Wharton & Garrison; William O’Brien – Paul Weiss Rifkind Wharton & Garrison; Cullen Sinclair – Paul Weiss Rifkind Wharton & Garrison; Yuni Sobel – Paul Weiss Rifkind Wharton & Garrison; Scott Sontag – Paul Weiss Rifkind Wharton & Garrison; Lawrence Witdorchic – Paul Weiss Rifkind Wharton & Garrison; Andrew Blau – Simpson Thacher & Bartlett; Gianna Ceophas – Simpson Thacher & Bartlett; Elizabeth Disciullo – Simpson Thacher & Bartlett; Katherine Draper – Simpson Thacher & Bartlett; Adeeb Fadil – Simpson Thacher & Bartlett; Lucas Fernandez-Rocha – Simpson Thacher & Bartlett; Brian Gluck – Simpson Thacher & Bartlett; Gregory Grogan – Simpson Thacher & Bartlett; Laura Hsu – Simpson Thacher & Bartlett; Danielle Jackson – Simpson Thacher & Bartlett; Melanie Jolson – Simpson Thacher & Bartlett; Parker Kelsey – Simpson Thacher & Bartlett; Scott Kobak – Simpson Thacher & Bartlett; Noreen Lavan – Simpson Thacher & Bartlett; Joo Hyun Lee – Simpson Thacher & Bartlett; Lori Lesser – Simpson Thacher & Bartlett; Jonathan Lindabury – Simpson Thacher & Bartlett; Keegan Lopez – Simpson Thacher & Bartlett; Nancy Mehlman – Simpson Thacher & Bartlett; Molly Nelson – Simpson Thacher & Bartlett; Jonathan Ozner – Simpson Thacher & Bartlett; Whitney Salinas – Simpson Thacher & Bartlett; Samuel Rudik – Simpson Thacher & Bartlett; Scott Schilson – Simpson Thacher & Bartlett; Jodi Schneider – Simpson Thacher & Bartlett; John Schueller – Simpson Thacher & Bartlett; Brian Stadler – Simpson Thacher & Bartlett; Nathan Utterback – Simpson Thacher & Bartlett; Anthony Vernace – Simpson Thacher & Bartlett; Benjamin Wells – Simpson Thacher & Bartlett; Patrick Wolff – Simpson Thacher & Bartlett; Caitlin Wood – Simpson Thacher & Bartlett;

Law Firms: Paul Hastings LLP; Paul Weiss Rifkind Wharton & Garrison; Simpson Thacher & Bartlett;

Clients: Blackstone; Jefferies; Morgan Stanley; QTS Realty Trust;

Author: Martina Bellini