Blackstone Eyes Data Centers in Blackstone Deal Amid Utility Merger Blockage

Blackstone Inc., a private equity firm, is planning to acquire a group that blocked a utility merger in New Mexico. The deal involves data centers, which are expected to expand Blackstone's presence in the energy sector. The acquisition is seen as a strategic move to capitalize on the growing demand for data storage infrastructure. The financial terms of the deal were not disclosed.

Blackstone Inc. (BX), a prominent private equity firm, has announced plans to acquire TXNM Energy (TXNM), a New Mexico-based energy holding company. The acquisition, valued at approximately $11.5 billion, includes debt and stock, and is expected to bolster Blackstone's presence in the energy sector [1].

The deal, which requires shareholder approval and regulatory clearance, is anticipated to be completed in the second half of 2025. TXNM Energy, which owns Public Service Company of New Mexico and Texas-New Mexico Power utilities, will continue to operate independently post-acquisition. The acquisition is seen as a strategic move by Blackstone to capitalize on the growing demand for data storage infrastructure, a key component of TXNM's operations [1].

Blackstone Infrastructure, the firm's infrastructure arm, will pay $61.25 per share in cash for TXNM, representing a 23% premium to the company's 30-day volume-weighted average stock price as of March 5. The acquisition will provide TXNM with significant long-term capital to meet electricity infrastructure needs across New Mexico and Texas [1].

Wall Street analysts have forecasted an average target price for Blackstone Inc. (BX) of $151.12, with a high estimate of $196.00 and a low estimate of $130.00. The consensus recommendation from 24 brokerage firms is currently "Outperform" [2].

Blackstone's acquisition strategy is part of its broader plan to expand its portfolio in the energy sector. The firm's infrastructure platform saw a 36% year-over-year increase in assets under management, driven by strong performance in data centers and other areas [2]. The acquisition of TXNM Energy is expected to further strengthen Blackstone's position in this sector.

The financial terms of the deal were not disclosed, but the acquisition is expected to align with Blackstone's long-term investment strategy. The company has been actively expanding its portfolio in various sectors, including infrastructure, private equity, and private credit, to capitalize on growth opportunities [2].

References:
[1] https://finance.yahoo.com/news/txnm-energy-acquired-blackstone-infrastructure-132609737.html
[2] https://www.gurufocus.com/news/2872771/blackstone-bx-to-acquire-txnmenergy-for-6125-per-share-bx-stock-news