Vertiv to buy Utility Innovation Group for up to $2.6 billion in data center push (updated)
UPDATE 2-Vertiv to buy Utility Innovation Group for up to $2.6 billion in data center push Rewrites and add details throughout
Sept 2 (Reuters) - Vertiv Holdings VRT.N on Wednesday said it would acquire microgrid and advanced power controls company Utility Innovation Group for about $1.45 billion in cash, with an additional payment of up to $1.15 billion if certain earnings targets are met.
Vertiv expects the deal to add capabilities that will help its customers speed up data center projects by securing power through both grid-connected and onsite energy sources.
"For AI data center operators, competitive advantage increasingly depends on how quickly they can move from site selection to first token," said Gio Albertazzi, the power and cooling equipment maker's CEO.
Interest in microgrids and onsite power systems has risen as data center operators seek alternatives to constrained utility grids amid an AI-driven boom in power demand. Microgrids allow data centers to combine utility power, onsite generation and energy storage, improving reliability and helping bring new facilities online more quickly.
The acquisition of North Carolina-based Utility Innovation Group will add microgrid controls, onsite power generation orchestration, specialized switchgear and behind-the-meter power architecture capabilities to Vertiv's portfolio.
With high AI workloads elevating power infrastructure to a key factor in data center development, opportunities have also opened up for suppliers of energy management and onsite power solutions.
In 2023, Vertiv acquired liquid-cooling technology company CoolTera to bolster its high-density cooling offerings for AI applications, while Schneider Electric agreed to acquire liquid-cooling specialist Motivair in 2024.
Vertiv's deal for Utility Innovation Group is expected to close in the fourth quarter of 2026, subject to regulatory approvals.
In July, Vertiv raised its annual adjusted profit per share forecast to $6.65 to $6.75, from a prior estimate of $6.30 to $6.40.
(Reporting by Apratim Sarkar in Bengaluru; Editing by Anil D'Silva and Jonathan Ananda)