$1.0 Billion planned acquisition expected to strengthen Vertiv’s leadership in next-generation thermal chain services for high-density and AI-driven environments
Vertiv Holdings Co, a leading player in critical digital infrastructure, has entered into an agreement to acquire PurgeRite Intermediate, LLC, (“PurgeRite”) a leading provider of mechanical flushing, purging and filtration services for data centers and other mission-critical facilities, from Milton Street Capital LLCfor approximately $1.0 billion in cash consideration at closing plus the potential additional consideration ofup to $250 million in cash based on achieving certain 2026 performance metrics. The acquisition, at approximately $1.0 billion purchase price, represents approximately 10.0x expected 2026 earnings before interest, taxes, depreciation, and amortization(EBITDA)including expected cost synergies. The expected EBITDA multiple is anticipated to be lower than 10.0x if the earn-out is paid.The acquisition is anticipated to be margin accretive to Vertiv’s Services business which operates above corporate average margins. PurgeRite is expected to enhance Vertiv’s thermal management services capabilities and strengthen its position as a global leader in next-generation thermal chain services for liquid cooling systems, including those that support AI data centers.
As high-performance computing (HPC) and the AI factories of the future drive higher heat densities that demand liquid cooling technology, it is crucial to deploy and maintain clean fluid loops to maximize cooling performance. Achieving thisstarts with optimal flow at commissioningby establishing ultra-clean, air-free, chemically stable coolant, and preservingthat balance to maintain performance throughout thesystem’s lifecycle.Effective fluid management — including high-velocity fluid loop flushing to remove debris, purging to remove air and gas, and filling with clean fluid — is an essential service that enables high-density data center operations by creating the conditions for greater thermal efficiency, operational resiliency, and data center uptime.
PurgeRitebrings engineering expertise, proprietary technologies, and the ability to scale to meet the needs of challenging data center schedules,to enable complex liquid cooling applicationsacross the thermal chain from chillers to coolant distribution units (CDUs). With strong relationships across hyperscalers and Tier 1 colocation providers, PurgeRite has established itself as an industry leader in mechanical flushing, purging, and filtrationfor mission-critical data center applications.
“PurgeRite’s specialized services and engineering excellence are expected to complement our existing portfolio and strengthen our ability to support high-density computing and AI applications where efficient thermal management is critical to performance and reliability.”
– Gio Albertazzi, CEO at Vertiv
“This acquisition represents a strategic expansion of Vertiv’s fluid management capabilities, from design through maintenance,” said Gio Albertazzi, CEO at Vertiv. “PurgeRite’s specialized services and engineering excellence are expected to complement our existing portfolio and strengthen our ability to support high-density computing and AI applications where efficient thermal management is critical to performance and reliability. This transaction aligns with our priority of deploying capital towards strategic acquisitions that strengthen and expand our leadership across the critical digital infrastructure ecosystem.”
Following the close of the transaction, PurgeRite’s services will join forceswith Vertiv’s existing liquid cooling services offerings to deliver end-to-end thermal management solutionsfrom facility to room and row to rack. The addition of PurgeRiteis anticipated to deliver significant customer benefits, including:
- Enhanced system performance through improved heat transfer and equipment efficiency
- Reduced risk of downtime through operational excellence, with detailed planning, fast execution and industry-leading processes
- Expanded service scale supporting global operations with consistent quality
PurgeRiteis currently headquartered in Houston, Texas, with plans to expand its service center network across North America.
Stifel is acting as sole financial advisor to Vertiv, and Buchanan, Ingersoll & Rooney PC provided legal counsel. Harris Williams is acting as financial advisor to PurgeRite and DLA Piper LLP (US)provided legal counsel. The transaction is subject to customary closing conditions, including the receipt of regulatory approvals under the Hart-Scott-Rodino Antitrust Improvements Act of 1976,and is expected to close in the fourth quarterof 2025.
