Is this U.S.-China selloff a buy? A top Wall Street voice weighs in
Investing.com -- Vertiv Holdings Co (NYSE:VRT) stock rose 5% Thursday after the company announced it has entered into an agreement to acquire the Great Lakes Data Racks & Cabinets family of companies for $200 million, bolstering its critical digital infrastructure offerings.
The acquisition is expected to enhance Vertiv’s capacity to deliver pre-engineered, future AI-ready rack solutions optimized for various computing markets including enterprise, edge, colocation, and hyperscale AI. Great Lakes, established in 1985 and headquartered in Edinboro, PA, is known for designing and manufacturing customized data rack enclosures and 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 transaction is subject to customary closing conditions and regulatory approvals, with an expected closing in the third quarter of 2025.
"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.
The integration is expected to deliver customer benefits through consolidated infrastructure sourcing, faster deployment through pre-engineered solutions, enhanced operational efficiency, improved scalability for AI applications, and comprehensive support through Vertiv’s global service network.
Oppenheimer analyst Noah Kaye raised the price target on Vertiv Holdings Co. to $140.00 (from $132.00) while maintaining a Outperform rating. "We view the deal as consistent with VRT’s focus on prioritizing speed-to-market for AI-ready critical infrastructure solutions and see the target’s portfolio complementing VRT’s existing racks and containment lineup," the analyst commented.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.