Extra Space Storage to buy Life Storage in $12.4bn deal

Extra Space Storage has agreed to buy Life Storage in a $12.4bn all-share deal.

The companies said in a statement on Monday that the deal "brings together two industry-leading platforms", and that the combined group is expected to have a pro forma equity market capitalisation of around $36bn and total enterprise value of $47bn.

Under the terms of the agreement, Life Storage shareholders will receive 0.8950 of an Extra Space share for each of their shares. This represents around $145.82 per share based on Extra Space's closing share price on 31 March.

Extra Space chief executive Joe Margolis said: "We are impressed with the management team's strategic repositioning of the Life Storage portfolio over the last seven years, creating a highly diversified portfolio of quality storage assets in strong growth markets.

"The business combination is highly synergistic, creating an even stronger combined company that will drive long-term, outsized operational and external growth opportunities through scale efficiencies, higher retained cash flow, data analytics, third-party management relationships and more."

The deal is expected to close in the second half of the year.