Planned approximately $1 billion acquisition to enhance Vertiv's leadership in next-generation thermal management services for high-density, AI-enabled environments
Vertiv Holdings Co (NYSE: VRT), a global leader in critical digital infrastructure, announced that it has entered into an agreement to acquire Purge Rite 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 LLC for a cash consideration of approximately $1 billion at closing, plus an additional potential consideration of up to $250 million based on the achievement of certain performance targets in the 2026. The acquisition, with a total value of approximately one billion dollars, represents a multiple of approximately 10 times the EBITDA expected for 2026, including expected cost synergies. The effective multiple could be lower than 10x if the variable component (“earn-out”) is paid. The transaction is expected to be margin-accretive for Vertiv's Service division, which already operates with margins above the company average. PurgeRite will enhance Vertiv's thermal management capabilities and solidify its position as a global leader in next-generation thermal chain services for liquid cooling systems, including those supporting AI data centers.
With the growth of high-performance computing (HPC) and the AI Factories of the future, generating ever-increasing heat densities and requiring liquid cooling technologies, it becomes critical to maintain clean fluid loops to maximize cooling performance. This begins with optimal flow at start-up, through the use of ultra-purified, air-free and chemically stable refrigerants, and continues with maintaining that balance throughout the life of the system. Effective fluid management, including high-speed circuit flushes to remove debris, purges to remove air and gas, and clean fluid refills, is an essential service for high-density data center operations, creating the conditions for greater thermal efficiency, operational resilience and service continuity.
PurgeRite brings with it engineering expertise, proprietary technologies and the ability to adapt to the complex timing needs of data centers, enabling complex liquid cooling applications throughout the thermal chain, from chillers to liquid distribution units (CDUs). Through strong relationships with hyperscalers and Tier 1 colocation providers, PurgeRite has established itself as an industry leader in mechanical flushing, purging and filtration services for critical data center applications.
“This acquisition represents a strategic expansion of Vertiv's capabilities in fluid management, from design to maintenance,” said Giordano Albertazzi, CEO of Vertiv. "PurgeRite's specialized services and engineering excellence will complement our existing portfolio and enhance our ability to support high-density computing and AI applications, where efficient thermal management is critical to performance and reliability. This transaction is fully aligned with our strategy to invest capital in strategic acquisitions that solidify and expand our leadership in the critical digital infrastructure ecosystem."
Following the closing of the transaction, PurgeRite's services will integrate with Vertiv's existing liquid cooling offerings to provide end-to-end thermal management solutions from plants to racks. The PurgeRite integration will provide customers with significant benefits, including:
- Improved system performance through improved heat transfer and increased equipment efficiency
- Reduce the risk of downtime through excellent operational management, with accurate planning, rapid execution and industry-leading processes
- Expand the scope of services to support global operations with consistent quality
PurgeRite is headquartered in Houston, Texas, and plans to expand its network of service centers throughout North America.
Stifel is acting as exclusive financial advisor to Vertiv, while Buchanan, Ingersoll & Rooney PC provided legal advice. Harris Williams is serving as financial advisor to PurgeRite and DLA Piper LLP (US) provided legal advice.
The transaction is subject to customary closing conditions, including regulatory approval under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, and is expected to be completed in the fourth quarter of 2025.
