Vertiv to acquire PurgeRite for $1 billion to expand liquid cooling services

COLUMBUS, Ohio - Vertiv Holdings Co (NYSE:VRT) announced Monday it has entered into an agreement to acquire PurgeRite, a provider of mechanical flushing, purging and filtration services for data centers, for approximately $1 billion in cash with a potential additional $250 million based on 2026 performance metrics. The deal comes as Vertiv, with a market capitalization of $73.7 billion and trading near its 52-week high, continues its aggressive expansion strategy amid strong revenue growth of 28.8% over the last twelve months.

The acquisition is expected to strengthen Vertiv’s capabilities in thermal management services for liquid cooling systems, particularly those supporting AI data centers and high-density computing environments.

PurgeRite specializes in fluid management services that are critical for maintaining clean fluid loops in liquid cooling systems, which have become increasingly important as high-performance computing and AI applications drive higher heat densities in data centers.

"This acquisition represents a strategic expansion of Vertiv’s fluid management capabilities, from design through maintenance," said Gio Albertazzi, CEO at Vertiv, according to the company’s press release.

The transaction represents approximately 10.0x expected 2026 earnings before interest, taxes, depreciation, and amortization (EBITDA) including expected cost synergies. Vertiv anticipates the acquisition will be margin accretive to its Services business.

PurgeRite, currently headquartered in Houston, Texas, plans to expand its service center network across North America. Following the close of the transaction, PurgeRite’s services will be integrated with Vertiv’s existing liquid cooling offerings.

The acquisition is subject to customary closing conditions, including regulatory approvals, and is expected to close in the fourth quarter of 2025.

Stifel is acting as sole financial advisor to Vertiv, while Harris Williams is serving as financial advisor to PurgeRite.

In other recent news, Vertiv Holdings Co reported impressive financial results for the third quarter of 2025, surpassing earnings expectations and showing strong revenue growth. The company achieved an adjusted diluted earnings per share (EPS) of $1.24, significantly higher than the anticipated $0.99. Additionally, Vertiv’s revenue reached $2.68 billion, exceeding the projected $2.59 billion. These developments highlight Vertiv’s robust performance in the recent period. The earnings call did not mention any mergers or acquisitions. Analyst firms have not provided any recent upgrades or downgrades for Vertiv following the earnings announcement. There are no additional company news updates at this time.

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