Vertiv closes $1.45 billion acquisition of UtilityInnovation Group
New microgrid controls, onsite generation and energy storage capabilities expand Vertiv’s support for AI data centers. The Westerville-based company aims to help customers bring facilities online faster, scale power capacity and choose from a broader range of power sources as their needs evolve.
Westerville-based Vertiv Holdings Co. (NYSE: VRT) has completed its approximately $1.45 billion acquisition of UtilityInnovation Group, adding onsite power and microgrid capabilities as it seeks to help customers address power constraints affecting AI data center deployment.
The acquisition, announced Oct. 27, extends Vertiv’s power and cooling portfolio upstream to the utility interconnection and onsite power sources, according to the company.
Why it matters
Vertiv said the combination is expected to help data center operators secure power faster, reduce dependence on utility interconnection timelines and expand site capacity beyond what the grid alone can provide.
UtilityInnovation Group, known as UIG, adds microgrid controls, onsite generation and energy storage orchestration, specialized switchgear and behind-the-meter power system design. Vertiv said the combined offering will not tie customers to a single generation technology or supplier.
By the numbers
- $1.45 billion: Approximate upfront cash purchase price.
- Up to $1.15 billion: Additional contingent cash payments tied to earnings before interest, taxes, depreciation and amortization targets over 12- and 24-month periods.
- Approximately 13 times: The upfront purchase price relative to UIG’s expected 2027 EBITDA.
- First year: Vertiv expects the acquisition to increase adjusted earnings per share in the first year following completion.
What UIG brings
Founded in 2020, UIG is headquartered in Raleigh, North Carolina, with European headquarters in Dublin, Ireland, and manufacturing operations in North Carolina and New Jersey.
The company designs power systems that support real-time electrical load and frequency balancing across behind-the-meter systems and utility-connected energy resources. Its offerings include proprietary controls software, customized microgrid switchgear and energy storage.
Vertiv said the acquisition will provide customers with a single accountable relationship from the grid interconnection through rack-level infrastructure.
What they’re saying
“As AI data center operators work to accelerate deployment in an increasingly power-constrained environment, access to power has become a critical competitive advantage,” said Vertiv CEO Giordano Albertazzi.
UIG founder and CEO Sidney Hinton added that the acquisition would bring his company’s expertise to more customers, “As part of Vertiv, we will be able to bring our microgrid and behind-the-meter power expertise to a broader set of customers globally, helping accelerate deployment of the critical infrastructure needed to support the growth of AI."
Vertiv supplies power, cooling and IT infrastructure systems and services for data centers, communications networks, and commercial and industrial facilities. The Westerville-headquartered company does business in more than 130 countries.
