Vertiv Holdings Co. completed its acquisition of Utility Innovation Holdings, Inc., adding microgrid and onsite-power systems as data-center operators face limited grid capacity for AI expansion.
The acquired company operates as UtilityInnovation Group (UIG). Vertiv announced consideration of approximately $1.45 billion in upfront cash; the merger terms make that amount subject to customary adjustments. The filing identifies working capital, debt and transaction expenses among factors used in those adjustments. Eligible equity holders may receive up to a further $1.15 billion in two possible payments if UIG meets specified EBITDA targets over 12- and 24-month periods, according to Vertiv’s filing with the Securities and Exchange Commission.
The acquisition adds controls for microgrids, switchgear designed for those systems and tools to coordinate electricity generated onsite with stored energy. Vertiv said these capabilities broaden its data-center business to cover grid connections and power produced at customer sites. The company has identified power availability and grid access as constraints on AI data-center development. Vertiv said local power systems could reduce reliance on utility interconnection schedules and help sites build capacity beyond what grid supply alone allows.
Vertiv valued the upfront consideration at roughly 13 times its estimate of UIG’s 2027 EBITDA. The company said including all possible contingent payments would make the purchase multiple appreciably lower. It also expects the acquisition to add to adjusted earnings per share during its first year after completion. Those valuation and earnings expectations come from Vertiv.
Vertiv Corporation and Vultra Merger Sub, Inc., entered into the merger agreement Sept. 1, with Vertiv announcing the deal the next day. The filing anticipated a fourth-quarter close and said the company planned to fund the purchase with resources already available to it. The acquisition was completed during that expected quarter.
Vertiv’s third-quarter results are scheduled for release before market open Wednesday, Oct. 28. The company has scheduled a conference call for 11 a.m. ET.
