Vertiv completes $1.45 billion UIG acquisition as AI data centres face growing power constraints
Vertiv has completed its $1.45 billion acquisition of Utility Innovation Group (UIG), a move that strengthens the data centre infrastructure provider’s ability to deliver power solutions as demand from artificial intelligence (AI) infrastructure continues to grow.
The transaction, which was funded through an upfront cash payment of approximately $1.45 billion, also includes potential additional payments of up to $1.15 billion. The contingent consideration will depend on UIG achieving specified earnings before interest, taxes, depreciation and amortisation (EBITDA) targets over the next 12 and 24 months.
Vertiv said the upfront purchase price represents approximately 13 times UIG’s expected 2027 EBITDA, with the valuation multiple expected to fall considerably if the full earnout is paid. The company also anticipates that the acquisition will contribute positively to adjusted earnings per share within the first year after completion.
UIG specialises in microgrid solutions, advanced power controls and behind-the-meter power architecture, particularly for data centre applications. Its integration into Vertiv expands the company’s capabilities beyond traditional data centre infrastructure to include power management solutions closer to the electricity grid and onsite generation.
The acquisition comes as data centre operators face growing challenges securing reliable electricity supplies, with grid capacity limitations and lengthy utility interconnection processes increasingly affecting the pace of AI infrastructure development.
By incorporating UIG’s expertise, Vertiv aims to help customers access power more quickly through microgrid controls, onsite generation and energy storage orchestration. The combined offering is also expected to give data centre operators greater flexibility to expand their power capacity beyond what existing utility connections can support.
“We are pleased to welcome the UIG team to Vertiv. As AI data center operators work to accelerate deployment in an increasingly power-constrained environment, access to power has become a critical competitive advantage. With UIG now part of Vertiv, we can extend our capabilities upstream to the utility interconnect and onsite power sources, creating a coordinated solution, from behind-the-meter power generation to chip, that helps customers achieve faster time to power without tying them to a single generation technology or supplier.” Giordano Albertazzi, CEO, Vertiv
The companies expect the expanded portfolio to reduce reliance on utility interconnection timelines, support additional behind-the-meter power capacity and provide customers with a single point of accountability across the power infrastructure chain, from grid connections to rack-level systems.
For UIG, joining Vertiv provides an opportunity to extend its microgrid and power architecture solutions to a wider international customer base.
“UIG is excited to advance its mission to solve the power constraints that are slowing AI data center development. 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.” Sidney Hinton, Founder and CEO, UIG
J.P. Morgan Securities LLC advised Vertiv on the transaction, with Buchanan Ingersoll & Rooney PC providing legal counsel. Morgan Stanley & Co. LLC served as financial adviser to UIG, while Davis Polk & Wardwell LLP acted as its legal counsel.
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