Acuity Announces Agreement to Acquire Parameter Technologies

Acuity expects the acquisition to add to fiscal 2027 adjusted diluted earnings per share, with $500 million in anticipated borrowings.

Rhea-AI Summary

Acuity (NYSE: AYI) has reached a definitive agreement to acquire Parameter Technologies for a purchase price of $675 million. Parameter provides leak detection, environmental monitoring and battery monitoring for data centers and other critical infrastructure. Upon closing, it will join Distech Controls within Acuity Intelligent Spaces.

Acuity expects the acquisition to increase fiscal 2027 full-year adjusted diluted earnings per share and benefit Acuity Intelligent Spaces revenue growth and margins. Parameter expects calendar 2027 sales of approximately $100 million, growth of more than 30 percent year-over-year, and EBITDA margins of approximately 40 percent. Acuity anticipates funding the purchase with $500 million in borrowings and the remainder with balance-sheet cash. Closing is expected in the second quarter of fiscal 2027, subject to conditions including expiration of the Hart-Scott-Rodino antitrust waiting period.

3 points · 0 major

MixediHow this balance works

How this balance works

Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.

It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.

Rhea-AI Sentiment measures something else, the tone of the wording.

How the balance worksHow Sentiment works

0 major · 3 points

Hollow bars mark forward-looking points. How the balance works

Positive

• Moderate point. Forward-looking: it has not happened yet and may not happen.$675 million definitive acquisition agreement would add Parameter’s detection and monitoring business to Distech Controls. 7.1% of market cap
• Moderate point. Forward-looking: it has not happened yet and may not happen.Fiscal 2027 full-year adjusted diluted earnings per share expected by Acuity to benefit from the acquisition.
• Minor point. Forward-looking: it has not happened yet and may not happen.Acuity Intelligent Spaces revenue growth and margins expected by Acuity to benefit from the acquisition.

Negative

• Moderate point. Forward-looking: it has not happened yet and may not happen.Balance-sheet cash anticipated to fund the remainder of the $675 million purchase price. 7.1% of market cap
• Minor point. Forward-looking: it has not happened yet and may not happen.$500 million in borrowings anticipated to fund the acquisition would add debt.
• Minor point. Forward-looking: it has not happened yet and may not happen.Closing expected in fiscal 2027’s second quarter remains subject to expiration of the Hart-Scott-Rodino waiting period.

Key Figures

Purchase price: $675 million Expected sales: ≈$100 million Year-over-year sales growth: >30% +3 more

Purchase price

$675 million

Parameter acquisition

Expected sales

≈$100 million

Parameter, calendar 2027

Year-over-year sales growth

>30%

Parameter, calendar 2027

EBITDA margin

≈40%

Parameter, expected

Borrowings

$500 million

Planned acquisition financing

Expected closing

Second quarter of fiscal 2027

Subject to customary closing conditions

Key Terms

ebitda, liquid cooling, hart-scott-rodino antitrust improvements act, adjusted diluted earnings per share

4 terms

ebitda financial

"and EBITDA margins of approximately 40 percent."

EBITDA stands for earnings before interest, taxes, depreciation, and amortization. It measures a company's profitability by focusing on the money it makes from its core operations, ignoring expenses like taxes and accounting adjustments. Investors use EBITDA to compare how well different companies are performing financially, as it provides a clearer picture of operational success without the influence of financial structure or accounting choices.

View in glossary

liquid cooling technical

"Market Driven by the Shift to Liquid Cooling"

Liquid cooling is a method that uses a flowing liquid—like water or a special coolant—to carry heat away from electronic components, similar to how a car radiator moves heat away from an engine. For investors, it matters because it can lower energy and maintenance costs, enable higher-performance computing, reduce the footprint of data centers, and support sustainability targets, all of which can affect a company’s operating margins and capital spending needs.

hart-scott-rodino antitrust improvements act regulatory

"the Hart-Scott-Rodino Antitrust Improvements Act of 1976"

A U.S. law that requires companies planning large mergers or acquisitions to notify federal antitrust authorities and wait for review before completing the deal. Think of it like applying for a building permit: regulators check whether the combined business would unfairly hurt competition and can clear the deal, impose changes, or seek to stop it, so the process affects transaction timing, cost, and whether expected benefits reach investors.

adjusted diluted earnings per share financial

"accretive to Acuity's fiscal 2027 full-year adjusted diluted earnings per share."

Adjusted diluted earnings per share is the company’s net profit per share after accounting for potential extra shares (from options or convertible securities) and removing one‑time or unusual items so the number reflects ongoing business results. Think of it like timing a runner’s steady pace after excluding a few unexpected stops; it gives investors a clearer view of sustainable profit available to each share. Investors use it to compare companies and judge underlying profitability and valuation without short‑term distortions.

AI-generated analysis. How Rhea-AI works. Not financial advice.

See more from StockTitan in Google Search and AI answers. Adds StockTitan as a preferred source · opens Google

Add on Google Not now

Expanding Acuity’s Data Center Portfolio from Edge Control to Leak Detection, Sensing and Monitoring

• Parameter is a Leader in Data Center Leak Detection, a Fast-Growing Market Driven by the Shift to Liquid Cooling
• Transaction Expected to Close in the Second Quarter of Fiscal 2027 and be Accretive to Acuity Fiscal 2027 Full-Year Adjusted Diluted Earnings per Share

ATLANTA, Oct. 26, 2026 (GLOBE NEWSWIRE) -- Acuity Inc. (NYSE: AYI) (the "Company" or "Acuity") has reached a definitive agreement to acquire Parameter Technologies ("Parameter") for a purchase price of $675 million. It is expected to be accretive to Acuity's fiscal 2027 full-year adjusted diluted earnings per share.

Parameter provides mission-critical leak detection, environmental monitoring and battery monitoring solutions for data centers and other critical infrastructure. Its accurate, location-specific leak detection capabilities help customers identify issues earlier, reduce disruption and protect critical equipment as data centers adopt more complex liquid cooling systems. Upon closing, Parameter will become part of Distech Controls^TM within Acuity Intelligent Spaces. Parameter shares Distech’s go-to-market channels, which include system integrators and distributors, and will deepen Distech’s relationships with cooling equipment OEMs.

“Parameter has built a high-performing business that is highly complementary to Distech’s portfolio,” said Peter Han, President of Acuity Intelligent Spaces. “By combining Parameter’s sensing, detection and monitoring technology with Distech’s edge controls, we expand our capabilities in data centers and deepen relationships with channel partners. This builds on Distech’s proven ability to solve customer problems and scale adjacent technologies that support durable growth for Acuity Intelligent Spaces.”

Parameter expects to deliver sales of approximately $100 million for calendar 2027, representing growth of more than 30 percent year-over-year, and EBITDA margins of approximately 40 percent. The acquisition is expected to be accretive to Acuity Intelligent Spaces revenue growth and margins.

“We have built our business around technology that customers trust to protect critical equipment,” said Michael Blazes, Chief Executive Officer of Parameter. “Joining Acuity allows us to build on that success. Together, we can bring our technology to more applications, help customers identify issues earlier and take action to better protect their operations.”

Acquisition Financing and Close

We anticipate funding the transaction using $500 million in borrowings and the remainder with cash on the balance sheet. The transaction is expected to close in the second quarter of fiscal 2027, subject to customary closing conditions, including, among others, the expiration of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended.

PJT Partners is serving as financial advisor to Acuity and Baker McKenzie is providing external legal counsel. J.P. Morgan and Bank of America are leading the financing.

About Acuity

Acuity Inc. (NYSE: AYI) is a market-leading industrial technology company. We use technology to solve problems in spaces, light and more things to come. Through our two business segments, Acuity Brands Lighting (ABL) and Acuity Intelligent Spaces (AIS), we design, manufacture, and bring to market products and services that make a valuable difference in people’s lives.

We achieve growth through the development of innovative new products and services, including lighting, lighting controls, building management solutions, and an audio, video and control platform. We focus on customer outcomes and drive growth and productivity to increase market share and deliver superior returns. We look to aggressively deploy capital to grow the business and to enter attractive new verticals.

Acuity Inc. is based in Atlanta, Georgia, with operations across North America, Europe and Asia. The Company is powered by approximately 13,000 dedicated and talented associates. Visit us at www.acuityinc.com.

About Parameter Technologies

Parameter Technologies develops monitoring and detection solutions for data centers, utilities and critical infrastructure. Through its RLE Technologies and CellWatch brands, Parameter provides leak detection, environmental monitoring and battery monitoring solutions that help facility operators protect performance and minimize costly downtime. Parameter is headquartered in Fort Collins, Colorado, with engineering and service operations in Raleigh, North Carolina, and sales and service capabilities in Milton Keynes, United Kingdom.

Forward-Looking Information

This press release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 (the "Act"). Forward-looking statements include, but are not limited to, statements that describe or relate to our plans, initiatives, projections, vision, goals, targets, commitments, expectations, objectives, prospects, strategies, or financial outlook, and the assumptions underlying or relating thereto. In some cases, we may use words such as "expect," "believe," "intend," "anticipate," "estimate," "forecast," "indicate," "project," "predict," "plan," "may," "will," "could," "should," "would," "potential," and words of similar meaning, as well as other words or expressions referencing future events, conditions, or circumstances, to identify forward-looking statements. We intend these forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Act. Forward-looking statements are not guarantees of future performance. Our forward-looking statements are based on our current beliefs, expectations, and assumptions, which may not prove to be accurate, and are subject to known and unknown risks and uncertainties, assumptions, and other important factors, many of which are outside of our control and any of which could cause our actual results to differ materially from those expressed or implied by the forward-looking statements. These risks and uncertainties are discussed in our filings with the U.S. Securities and Exchange Commission, including our most recent annual report on Form 10-K (including, but not limited to, the sections titled "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations"), quarterly reports on Form 10-Q, and current reports on Form 8-K. Any forward-looking statement speaks only as of the date on which it is made. This press release is not comprehensive, and for that reason, should be read in conjunction with such filings. You are cautioned not to place undue reliance on any forward-looking statements. Except as required by law, we undertake no obligation to publicly update or release any revisions to these forward-looking statements to reflect any events or circumstances after the date of this press release or to reflect the occurrence of unanticipated events, whether as a result of new information, future events, or otherwise.

Investor Contact:
Charlotte McLaughlin
Vice President, Investor Relations
(404) 853-1456
investor.relations@acuityinc.com

Media Contact:
April Appling
Senior Vice President, Corporate Marketing and Communications
corporatecommunications@acuityinc.com

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

How much will Acuity pay for Parameter Technologies, and how will it fund the acquisition?

Acuity agreed to acquire Parameter Technologies for $675 million. The company anticipates funding the transaction with $500 million in borrowings and the remainder with cash on its balance sheet.

When is Acuity’s acquisition of Parameter Technologies expected to close?

Acuity expects the acquisition to close in the second quarter of fiscal 2027. Closing is subject to customary conditions, including expiration of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act.