Vertiv Holdings Co. announced it will acquire PurgeRite Intermediate, LLC for $1 billion in cash, with a potential earn‑out of up to $250 million based on 2026 performance metrics. The transaction is expected to close in the fourth quarter of 2025.
The purchase adds PurgeRite’s mechanical flushing, purging and filtration expertise and proprietary technologies to Vertiv’s liquid‑cooling portfolio, enabling end‑to‑end thermal‑management solutions for high‑density, AI‑driven data‑center environments. The deal is projected to be margin‑accretive to Vertiv’s Services business, which already operates above corporate average margins.
Vertiv’s Q3 2025 results showed adjusted diluted EPS of $1.24 versus $0.99 expected, and revenue of $2.68 billion, up 29 % year‑over‑year. The company raised its full‑year 2025 guidance on October 22 to adjusted EPS of $4.07‑$4.13 and net sales of $10.16‑$10.24 billion. The acquisition is positioned to capture a growing liquid‑cooling market that is projected to reach $21.14 billion by 2032, driven by AI workloads that increase heat density.
The transaction is priced at roughly a 10‑fold multiple of PurgeRite’s projected 2026 EBITDA, including expected cost synergies. The earn‑out structure allows for up to $250 million contingent on meeting 2026 performance metrics.
The acquisition occurs amid heightened M&A activity in the data‑center cooling space. On the same day, Eaton announced a $9.5 billion acquisition of Boyd Corporation’s thermal‑management business, underscoring the strategic importance of liquid‑cooling solutions.
Vertiv CEO Gio Albertazzi noted that 2024 is the year of “big acceleration of liquid cooling,” and the addition of PurgeRite’s technologies is expected to strengthen Vertiv’s competitive moat and support its leadership in critical digital infrastructure.
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