Overland Park, KS-based QTS Realty Trust has reached an agreement to acquire Virginia-based colocation, cloud and managed services provider, Carpathia Hosting, Inc. for approximately $326 million. Carpathia is a leading hybrid cloud services and Infrastructure-as-a-Service provider offering a high level of security and compliance solutions to sophisticated enterprise customers and federal agencies.
The transaction strengthens QTS' existing, fully integrated real estate and technology services platform, known as QTS' 3C's: custom data center (C1), colocation (C2) and cloud and managed services (C3). The combined companies will service over 1,000 customers in North America, Europe and Asia Pacific.
"Carpathia will be a great complement to our existing platform, enhancing and expanding our premium product and service offering, while delivering added value to customers, shareholders and employees," said Chad Williams, Chief Executive Officer – QTS. "The addition of Carpathia, with its seasoned management team, will accelerate QTS' already industry-leading performance, and further strengthen QTS' unique integrated technology services platform that enterprise customers increasingly require."
The transaction will provide a number of strategic benefits to QTS. "We admire the leadership position QTS has taken in understanding the evolving needs of the industry and building dynamic solutions to meet customer demand," said Peter Weber, Chief Executive Officer – Carpathia. "Joining QTS means leveraging common strengths and continuing the development of innovative hybrid cloud solutions for enterprise and public sector customers. Furthermore, the existing Carpathia customer base will benefit significantly from QTS' world-class mega data center infrastructure for their integrated data center needs."
Peter Weber will join the QTS executive team as Chief Product Officer. The remainder of the Carpathia executive team will continue to play key roles in further developing and delivering products and services that customers seek and value.
QTS Realty Trust, Inc. is a leading national provider of data center solutions and fully managed services and a leader in security and compliance. The company offers a complete, unique portfolio of core data center products, including custom data center (C1), colocation (C2) and cloud and managed services (C3), providing the flexibility, scale and security needed to support the rapidly evolving hybrid infrastructure demands of web and IT applications. With 12 data centers in eight states, QTS owns, operates and manages approximately 4.7 million square feet of secure, state-of-the-art data center infrastructure and supports more than 850 customers. QTS' Critical Facility Management (CFM) can provide increased efficiency and greater performance for third-party data center owners and operators.
The transaction is expected to close mid-year 2015, subject to the fulfillment of customary closing conditions.