Overland Park, Kan.-based data center operator QTS Realty Trust (NYSE: QTS) has agreed to acquire Dulles, Va.-headquartered cloud computing provider Carpathia Hosting for $326 million in an effort to grow both companies’ colocation and managed services market footprints.
QTS said Thursday it expects to close the deal sometime in the middle of 2015 and the enterprise value of the deal includes $290 million the company will pay for Carpathia and $36 million in capital lease obligations to assume.
Carpathia has close to 230 public sector and commercial customers and holds a provisional authority-to-operate designation under the federal government’s FedRAMP program for cloud computing product certifications, as well as other ATO statuses with defense and civilian agencies.
QTS says it will have 1, 000 total enterprise customers when the acquisition closes and will offer both its infrastructure, including the company’s Richmond, Va. data center, and Carpathia’s product mix to clients in the federal and commercial sectors.
Carpathia CEO Peter Weber said both companies aim to leverage “common strengths and continuing the development of innovative hybrid cloud solutions for enterprise and public sector customers.”
Weber will transition into the chief product officer role at QTS upon the transaction’s closure.
QTS owns and operates 12 data centers in eight states with approximately 4.7 million total feet of square space.
Carpathia also brings its partnership with VMware (NYSE: VMW) under the brand of VMware vCloud Government Service provided by Carpathia” to QTS.
QTS expects the deal to increase its earnings per share during its current fiscal year and the next.