09:26 AM EDT, 05/19/2025 (MT Newswires) -- TXNM Energy ( TXNM ) on Monday agreed to be acquired by Blackstone's (BX) infrastructure arm in a deal with a total enterprise value of about $11.5 billion, including debt and stock.

Blackstone Infrastructure will pay $61.25 per share in cash for the New Mexico-based energy holding company, according to a joint statement. The deal reflects a 23% premium to TXNM Energy's ( TXNM ) 30-day volume-weighted average stock price as of March 5, the day before media speculation began about a potential deal involving the firm.

Shares of TXNM Energy ( TXNM ), which owns the Public Service Company of New Mexico and Texas-New Mexico Power utilities, spiked 8.3% in the most recent premarket activity. Blackstone was down nearly 2%.

The deal requires approval from TXNM Energy's ( TXNM ) shareholders and clearance from regulators. It is expected to be completed in the second half of next year.

The energy company expects the deal to provide significant long-term capital to meet electricity infrastructure needs across New Mexico and Texas. The firm and its two subsidiaries will continue to operate independently and are expected to retain their local workforce.

"We are excited to form this long-term partnership with Blackstone Infrastructure," TXNM Energy ( TXNM ) Chief Executive Pat Collawn said in the statement. "We will continue to collaborate with customers, communities, legislators and regulators to achieve our shared goals."

Last week, TXNM Energy ( TXNM ) announced that Chief Operating Officer Don Tarry will succeed Collawn as CEO of the company, with Collawn to take up the role of executive chair, effective July 1. Collawn will step down as executive chair once the deal completes, while Tarry will continue to oversee the firm's operations as chief executive, the company said Monday.

"We are excited to partner with Pat, Don and their fantastic team to accelerate growth at TXNM, and across New Mexico and Texas," Blackstone Infrastructure's global head, Sean Klimczak, said. "We look forward to having the opportunity to engage in meaningful dialogue about how we can create win-win, growth-oriented investments across both states."

As part of the transaction, Blackstone Infrastructure will invest $400 million to buy 8 million of TXNM Energy's ( TXNM ) newly issued shares at $50 apiece through a private placement agreement. The issuance is anticipated to close in June.

TXNM Energy ( TXNM ) also plans to issue an additional $400 million of equity before the deal completes. The company said it's not affirming its 2025 guidance due to the impact of the issuance and doesn't plan to provide a revised forecast amid the pending acquisition.

Earlier in May, the company affirmed its 2025 ongoing per-share earnings outlook range of $2.74 to $2.84.

In February, Blackstone announced that funds managed by Blackstone Infrastructure agreed to acquire Safe Harbor Marinas, a marina and superyacht servicing business in the US, from Sun Communities (SUI) for $5.65 billion.