Vertiv Holdings has announced it has entered into an agreement to acquire Purge Rite Intermediate, LLC, (PurgeRite), from Milton Street Capital LLC for approximately $1.0 billion in cash consideration at closing plus the potential additional consideration of up to $250 million in cash based on achieving certain 2026 performance metrics.

The acquisition, at approximately $1.0 billion purchase price, represents approximately 10.0 times expected 2026 earnings before interest, taxes, depreciation, and amortisation (EBITDA) including expected cost synergies. The expected EBITDA multiple is anticipated to be lower than 10.0 times if the earn-out is paid. The acquisition is anticipated to be margin accretive to Vertiv’s Services business which operates above corporate average margins. PurgeRite is expected to enhance Vertiv’s thermal management services capabilities and strengthen its position as a global leader in next-generation thermal chain services for liquid cooling systems, including those that support artificial intelligence (AI) data centres.

As high-performance computing (HPC) and the AI factories of the future drive higher heat densities that demand liquid cooling technology, it is crucial to deploy and maintain clean fluid loops to maximise cooling performance. Achieving this starts with optimal flow at commissioning by establishing ultra-clean, air-free, chemically stable coolant, and preserving that balance to maintain performance throughout the system’s lifecycle. Effective fluid management including high-velocity fluid loop flushing to remove debris, purging to remove air and gas, and filling with clean fluid, is an essential service that enables high-density data centre operations by creating the conditions for greater thermal efficiency, operational resiliency, and data centre uptime.

Following the close of the transaction, PurgeRite’s services will join forces with Vertiv’s existing liquid cooling services offerings to deliver end-to-end thermal management solutions from facility to room and row to rack. The addition of PurgeRite is anticipated to deliver significant customer benefits, including:

  • Enhanced system performance through improved heat transfer and equipment efficiency
  • Reduced risk of downtime through operational excellence, with detailed planning, fast execution and industry-leading processes
  • Expanded service scale supporting global operations with consistent quality.

Commenting on the announcement, Gio Albertazzi, chief executive officer (CEO), Vertiv, said, “This acquisition represents a strategic expansion of Vertiv’s fluid management capabilities, from design through maintenance. PurgeRite’s specialised services and engineering excellence are expected to complement our existing portfolio and strengthen our ability to support high-density computing and AI applications where efficient thermal management is critical to performance and reliability. This transaction aligns with our priority of deploying capital towards strategic acquisitions that strengthen and expand our leadership across the critical digital infrastructure ecosystem.”