The surge in transactions for power and grid support for data infrastructure continued Monday with the announcement that Blackstone Infrastructure, one of the nation’s largest owner/operators of data centers, has agreed to acquire TXNM Energy for $11.5 billion, including debt.
Based in Albuquerque, New Mexico, TXNM provides state-regulated power to more than 800,000 homes and businesses across grids in New Mexico and West Texas.
Under terms of the transaction, TXNM shareholders will receive $61.25 per share in cash at closing, a 23.0 percent premium and a 30-day volume weighted average price as of March 5, the date of the first public mention of a potential sale.
In addition to the purchase, Blackstone is investing $400 million through the private placement of eight million new-issued shares of TXNM at $50 per share. TXNM also expects to issue another $400 million in equity before close of the transaction, currently assumed to occur during the second half of 2026.
Blackstone is to be funded through assumption of existing debt and will be assuming no incremental debt as a result of the transaction.
Troutman Pepper Locke is serving as outside legal advisor to TXNM. Blackstone is being represented by Kirkland & Ellis.
Financial advisors to TXNM include Wells Fargo and Citi. RBC Capital markets is lead financial advisor to Blackstone Infrastructure, along with J.P. Morgan.
TXNM general counsel is Brian Iverson (Albuquerque).
The Kirkland team was led by Rhett Van Syoc (Houston), Rob Goodin (Houston) with Daniel Cadis (Austin), Debbie Yee (Houston), Camille Meissner (Houston), Peter Hyams (Houston) and Markus Wang (Houston).
Debt finance was handled by Yuli Wang (New York), Lauren Nickoloff (New York) and Melissa Hutson (New York). Julian Seigeur (Houston) advised on capital markets; Mark Dundon (Houston) and Nicole Martin (Houston) on tax; Brooksany Barrowes (Washington D.C.), John Decker and Damien Lyster (Houston) on regulatory issues and Jim Dolphin (Houston) and Anna Todd (Houston) on environmental concerns.
The Troutman Pepper Locke team was led from Richmond by partner Mason Bayler. No Texas lawyers were involved.
QTS one of the nation’s largest data center providers is a portfolio company of Blackstone with over three gigawatts of capacity and more than 75 data centers in operation or under development across 14 states, including four major centers in Texas (Irving, South Dallas, Fort Worth and San Antonio), as well as the U.K. and Netherlands.