Vertiv Completes $1.45 Billion Acquisition Of UtilityInnovation Group
Vertiv has completed its acquisition of Utility Innovation Holdings, Inc., operating as UtilityInnovation Group (UIG), in a deal valued at approximately $1.45 billion in upfront cash. The transaction also includes contingent payments of up to $1.15 billion, subject to UIG achieving specified earnings before interest, taxes, depreciation and amortisation (EBITDA) targets over 12- and 24-month periods.
Based on the upfront purchase price, the acquisition represents approximately 13 times UIG’s expected 2027 EBITDA. Vertiv said the multiple would be significantly lower if the full earnout is paid. The company expects the acquisition to be accretive to adjusted earnings per share during the first year following completion.
UIG specialises in microgrid solutions, advanced power controls and behind-the-meter power architecture for data centres. Its capabilities include microgrid controls, onsite generation and energy storage orchestration, and power infrastructure designed to operate behind the utility meter.
The acquisition extends Vertiv’s portfolio upstream to the grid interconnect, complementing its existing power and cooling infrastructure offering. The combined capabilities are intended to help data centre operators secure power more quickly as grid capacity and interconnection delays increasingly affect the deployment of AI infrastructure.
“We are pleased to welcome the UIG team to Vertiv,” said Vertiv CEO Giordano Albertazzi. “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.”
Vertiv said the combined portfolio is expected to offer customers greater flexibility in sourcing, managing and expanding their power infrastructure. The company outlined three intended benefits: reducing or eliminating reliance on utility interconnection timelines, enabling behind-the-meter capacity to exceed what the grid alone can provide, and providing customers with a single point of accountability from grid interconnect through rack-level infrastructure.
“UIG is excited to advance its mission to solve the power constraints that are slowing AI data center development,” said Sidney Hinton, Founder and CEO of UIG. “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.”
J.P. Morgan Securities LLC acted as financial advisor to Vertiv, while Buchanan Ingersoll & Rooney PC served as its legal counsel. Morgan Stanley & Co. LLC advised UIG on the transaction, with Davis Polk & Wardwell LLP serving as its legal counsel.
