Acuity Inc. agreed to buy Parameter Technologies for $675 million, seeking to broaden its building-controls business with monitoring products as data centers move toward more complex liquid cooling systems.
The Oct. 26 agreement would place Parameter within Distech Controls, part of the Acuity Intelligent Spaces business segment. Acuity plans to finance $500 million of the purchase price through borrowings and cover the balance with cash. The acquisition has not closed.
Parameter’s RLE Technologies and CellWatch brands offer systems that detect leaks, track environmental conditions and monitor batteries. Acuity said the businesses’ sales networks overlap among system integrators and distributors. It linked the proposed deal to the need for more monitoring as data center cooling systems become more complex.
Parameter projects about $100 million in sales for calendar 2027, more than 30% above its expected calendar 2026 level. It also projects an earnings before interest, taxes, depreciation and amortization margin of about 40%. Acuity expects the purchase to increase adjusted diluted earnings per share in fiscal 2027. Each figure is a company forecast.
Parameter Chief Executive Officer Michael Blazes said the combination would help bring the company’s technology to more applications. For Acuity, the purchase would extend a business segment that recorded $1,106.6 million in sales for the fiscal year ended Aug. 31, 2026, up 44.8% from the previous year.
Acuity attributed most of that increase to its earlier QSC acquisition and higher Distech sales. It bought QSC, an audio, video and controls business, for $1.2 billion on Jan. 1, 2025.
Acuity expects the Parameter transaction to close in its second quarter of fiscal 2027, subject to conditions including the expiration of a U.S. antitrust waiting period. Parameter has described its expected closing window as late 2026. Neither company has announced a specific closing date.
