Jabil Acquires Hanley Energy for $725M to Power AI Ambitions
The strategic acquisition bolsters Jabil's capabilities in the high-growth data center power and cooling market, critical for AI infrastructure.
Jabil Inc. (NYSE: JBL) has deepened its investment in the infrastructure powering the artificial intelligence boom, announcing Monday the completion of its acquisition of Hanley Energy Group in a deal valued at approximately $725 million.
The all-cash transaction is a strategic move by the Florida-based manufacturing solutions provider to capture a larger share of the critical power and cooling market for data centers, a segment experiencing explosive growth due to the immense energy demands of AI technologies.
Shares of Jabil reacted positively to the strategic alignment, climbing over 5% in morning trading to $240.39, pushing the company's market capitalization over $25.6 billion. The acquisition positions Jabil to offer more comprehensive solutions as hyperscalers and enterprises race to build out the sophisticated infrastructure required for generative AI.
Hanley Energy, with dual headquarters in Ireland and Ashburn, Virginia, is a specialized provider of turnkey power and energy management solutions for data centers. The acquisition will integrate Hanley's expertise directly into Jabil's intelligent infrastructure segment. "The addition of Hanley Energy's expertise in power systems and energy optimization is a direct complement to our existing data center power solutions," said Matt Crowley, Jabil's Executive Vice President of Global Business Units, in a statement.
This move reinforces Jabil's aggressive pivot towards the high-margin businesses that form the backbone of the AI revolution. The company has seen its stock deliver an impressive return of over 73% in the past year, largely driven by its role in producing complex components for AI data centers. According to recent financial disclosures, Jabil projects its AI-related revenue to reach approximately $12.1 billion in fiscal 2026, a significant jump fueled by accelerating demand.
The strategic importance of power management cannot be overstated in the current tech landscape. As AI models become more powerful, the energy required to train and run them has surged, making efficient power distribution and cooling paramount. Ed Bailey, Jabil's SVP and Chief Technology Officer for Intelligent Infrastructure, noted that power management is becoming increasingly critical. The deal, he explained, aligns with Jabil's strategy to deliver custom solutions for AI leaders, particularly when combined with the company's expanding thermal management capabilities.
Financially, the acquisition is expected to be a meaningful addition to Jabil's top and bottom lines. Hanley Energy is projected to generate between $350 million and $400 million in annualized revenue in its first year post-acquisition, with mid-to-high-teen EBITDA margins and robust double-digit growth expectations.
The acquisition follows Jabil's recent announcement of a $500 million multi-year investment to expand its U.S. manufacturing footprint for cloud and AI infrastructure, signaling a clear focus on shoring up its position within the domestic technology supply chain.
Analysts have been broadly positive on Jabil's direction, with an average price target of $259.25, suggesting further upside. The company's focus on high-growth, complex sectors like AI infrastructure, automotive, and healthcare has allowed it to differentiate itself from traditional contract manufacturers. With the integration of Hanley Energy, Jabil is poised to provide a more vertically integrated offering, from component manufacturing to rack-level power deployment, strengthening its indispensable role for the world's largest technology companies.