Vertiv Deepens AI Bet with $1B Liquid Cooling Acquisition
The deal for PurgeRite aims to enhance Vertiv's service offerings for high-density data centers as the AI arms race intensifies.
Vertiv Holdings Co (NYSE: VRT), a critical player in the global data center infrastructure market, has announced its acquisition of PurgeRite, a specialized fluid management firm, for $1 billion in cash. The deal, which includes a potential $250 million earn-out based on 2026 performance, significantly deepens Vertiv’s capabilities in liquid cooling services, a sector experiencing explosive growth driven by the demands of artificial intelligence.
The acquisition positions Vertiv to capture a larger share of the thermal management market for high-density computing, where traditional air cooling is proving insufficient for the powerful, heat-generating chips that power AI applications. As data centers worldwide retool for the AI era, the demand for sophisticated liquid cooling systems—and the expertise to maintain them—has surged, making this a pivotal strategic move for the Ohio-based company.
Shares of Vertiv have been a standout performer over the past year, with the stock price climbing steadily as investors bet on its essential role in the build-out of AI infrastructure. The company, which currently has a market capitalization of approximately $73.7 billion, has seen its valuation soar as orders for its thermal and power management solutions have hit record levels. This acquisition, funded from existing resources, leverages that strong market position to bolt on a high-margin, specialized service provider.
PurgeRite specializes in the mechanical flushing, purging, and filtration services that are vital for the health of liquid cooling loops in data centers. According to a company announcement, these services are critical for maintaining system cleanliness and ensuring the longevity and efficiency of high-performance computing hardware. By integrating PurgeRite, Vertiv expands its portfolio from system design and hardware to include the entire thermal chain, including ongoing maintenance and services.
“The acquisition of PurgeRite is a key step in strengthening our ability to support the complex thermal management needs of our customers,” said Gio Albertazzi, CEO of Vertiv, in a statement. He emphasized that PurgeRite’s engineering expertise would complement Vertiv’s existing offerings and enhance its position in the rapidly evolving AI infrastructure landscape.
The deal is expected to be immediately accretive to Vertiv’s service margins, which already operate above the corporate average. Analysts reacted positively to the news, viewing the move as a logical and strategic expansion. M&A analysts noted that the acquisition broadens Vertiv's liquid-cooling services and appears strategically beneficial to service margins. The transaction is valued at approximately 10 times PurgeRite's expected 2026 EBITDA, including anticipated cost synergies.
Wall Street has maintained a bullish outlook on Vertiv, with a consensus "Strong Buy" rating from analysts and an average price target of $192.45. The company’s robust financial performance and a strong order backlog, which reached $8.5 billion earlier this year, have underpinned investor confidence. This acquisition is seen as another proof point that Vertiv is capitalizing effectively on the secular growth trend of AI.
The transaction is expected to close in the fourth quarter of 2025, subject to customary closing conditions and regulatory approvals. For Vertiv, the integration of PurgeRite is more than just an acquisition; it is a strategic reinforcement of its role as an indispensable partner in the ongoing, multi-billion-dollar global expansion of AI data centers.