Vertiv Holdings Co. closed a $1 billion acquisition of PurgeRite Intermediate LLC, a specialist in mechanical flushing, purging, and filtration for data‑center liquid‑cooling systems. The deal includes an upfront cash payment of roughly $1 billion and a potential earn‑out of up to $250 million based on 2026 performance, valuing the transaction at about 10× expected 2026 EBITDA when synergies are included.
The acquisition broadens Vertiv’s thermal‑management portfolio by adding PurgeRite’s fluid‑management expertise, which is critical for maintaining clean, high‑density liquid loops in AI and high‑performance computing (HPC) environments. By integrating PurgeRite’s services into its existing Services business, Vertiv aims to deliver end‑to‑end cooling solutions that cover design, installation, and ongoing maintenance, thereby creating recurring revenue streams with renewal rates above 90%.
Financially, the transaction is projected to be margin accretive to Vertiv’s Services segment. The earn‑out structure aligns PurgeRite’s performance with Vertiv’s growth targets, while the 10× EBITDA multiple reflects the premium placed on high‑margin liquid‑cooling services. The deal also provides cost synergies that are expected to offset the upfront cash outlay and support a stronger operating margin in the medium term.
The move comes amid a competitive push in the data‑center infrastructure space. On the same day Vertiv announced the acquisition, Eaton disclosed a $9.5 billion purchase of Boyd Corporation’s thermal‑management business, underscoring the strategic importance of liquid‑cooling technology for AI and HPC workloads that generate intense heat densities. PurgeRite’s proven service model positions Vertiv to capture a larger share of this growing market.
CEO Gio Albertazzi said, “We are excited to officially welcome PurgeRite to Vertiv, deepening our fluid‑management capabilities. The acquisition complements our existing portfolio and enhances our ability to provide end‑to‑end product and service support for customers’ high‑density computing and AI applications where efficient thermal management is critical to performance and reliability.” He added that the transaction aligns with Vertiv’s priority of deploying capital toward strategic acquisitions that strengthen leadership across the digital‑infrastructure ecosystem.
Vertiv’s Q3 2025 results were strong, with revenue and earnings exceeding analyst expectations, and the company raised its quarterly dividend from $0.15 to $0.25 per share, reflecting confidence in its financial health. An InvestingPro analysis rated Vertiv’s financial health as “GREAT,” indicating ample capacity to fund strategic initiatives like this acquisition.
The announcement was well received by investors, reflecting confidence in the strategic fit and the expected margin accretive nature of the deal. The transaction is expected to reinforce Vertiv’s position as a global leader in next‑generation liquid‑cooling services and to accelerate growth in the AI and HPC data‑center market.
Overall, the acquisition strengthens Vertiv’s end‑to‑end service offering, positions the company to capture a larger share of the high‑density cooling market, and is expected to deliver margin accretive benefits that support continued growth in its Services business.
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