Vertiv To Acquire Custom Rack Solutions Manufacturer
Rhea-AI Summary
Vertiv (NYSE: VRT) has announced a strategic acquisition of Great Lakes Data Racks & Cabinets for $200 million. The purchase price represents approximately 11.5x expected 2026 EBITDA including synergies and cross-selling opportunities.
Great Lakes, established in 1985 and headquartered in Edinboro, PA, specializes in designing and manufacturing customized data rack enclosures and integrated infrastructure solutions. The acquisition will enhance Vertiv's capability to deliver pre-engineered, AI-ready rack solutions for enterprise, edge, colocation, and hyperscale AI computing markets.
The transaction is expected to close in Q3 2025, subject to regulatory approvals. The integration aims to strengthen Vertiv's position in the critical white space market while offering consolidated infrastructure sourcing and enhanced operational efficiency.
Positive
- Strategic acquisition valued at $200 million strengthens Vertiv's market position in critical digital infrastructure
- Acquisition expected to enhance operational efficiency through factory integration of Vertiv power and cooling solutions
- Expands product portfolio with high-end rack solutions specifically designed for AI infrastructure
- Geographic expansion with manufacturing facilities in both U.S. and Europe
- Synergistic integration expected to deliver consolidated infrastructure sourcing and faster deployment capabilities
Negative
- Significant capital expenditure of $200 million required for the acquisition
- High acquisition multiple of 11.5x expected 2026 EBITDA
- Transaction subject to regulatory approvals which could delay or prevent closing
News Market Reaction
On the day this news was published, VRT gained 4.56%, reflecting a moderate positive market reaction. Argus tracked a peak move of +2.4% during that session. Our momentum scanner triggered 47 alerts that day, indicating elevated trading interest and price volatility. This price movement added approximately $2.22B to the company's valuation, bringing the market cap to $50.88B at that time.
Data tracked by StockTitan Argus on the day of publication.
Acquisition positioned to strengthen leadership in high-density integrated infrastructure offerings
The purchase price represents approximately 11.5x expected 2026 earnings before interest, taxes, depreciation, and amortization (EBITDA) including cost synergies and cross-selling opportunities. The acquisition is expected to enhance Vertiv's capacity to deliver pre-engineered, future AI-ready rack solutions optimized for enterprise, edge, colocation and hyperscale AI computing markets.
Established in 1985 and headquartered in
"Great Lakes is a leading rack manufacturer with an extensive portfolio of high-end rack solutions and innovation capabilities that are essential in an increasingly demanding high-density AI infrastructure environment," said Gio Albertazzi, CEO at Vertiv. "With the acquisition of Great Lakes, Vertiv strengthens its position as a premier technology solutions provider in the critical white space market. Our combined capabilities enable us to deliver comprehensive, engineered infrastructure solutions that go beyond basic integration, addressing the complex challenges of next-generation AI technology."
The integration of Great Lakes' expertise with Vertiv's existing portfolio is expected to deliver significant customer benefits through consolidated infrastructure sourcing, faster deployment through pre-engineered solutions, enhanced operational efficiency with factory integration of Vertiv™ power and cooling solutions, improved scalability for AI and edge computing applications, and comprehensive support through Vertiv's global service network.
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 third quarter 2025.
For more information about Vertiv's portfolio of solutions, visit Vertiv.com.
About Vertiv
Vertiv (NYSE: VRT) brings together hardware, software, analytics and ongoing services to enable its customers' vital applications to run continuously, perform optimally and grow with their business needs. Vertiv solves the most important challenges facing today's data centers, communication networks and commercial and industrial facilities with a portfolio of power, cooling and IT infrastructure solutions and services that extends from the cloud to the edge of the network. Headquartered in
Category: Financial News
Cautionary Note Regarding Forward-Looking Statements
This release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27 of the Securities Act, and Section 21E of the Securities Exchange Act. These statements are only a prediction. Actual events or results may differ materially from those in the forward-looking statements set forth herein. Readers are referred to Vertiv's filings with the Securities and Exchange Commission, including its most recent Annual Report on Form 10-K and any subsequent Quarterly Reports on Form 10-Q for a discussion of important risk factors concerning Vertiv and its operations. Those risk factors and risks related to the proposed transaction, among others, could cause actual results to differ materially from historical performance and include, but are not limited to: the timing and consummation of the proposed transaction; the risk that the closing does not occur; expected expenses related to the transaction; the possible diversion of management time on issues related to the transaction; the ability of Vertiv to maintain relationships with customers and suppliers of Great Lakes; and the ability of Vertiv to retain management and key employees of Great Lakes. Vertiv is under no obligation to, and expressly disclaims any obligation to, update or alter its forward-looking statements, whether as a result of new information, future events or otherwise.
For investor inquiries, please contact:
Lynne Maxeiner
Vice President, Global Treasury & Investor Relations
Vertiv
E: lynne.maxeiner@vertiv.com
For media inquiries, please contact:
Ruder Finn for Vertiv
Vertiv@RuderFinn.com
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SOURCE Vertiv Holdings Co
FAQ
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