The operation includes a potential earn-out of up to $250 million and targets the growing demand for fluid management in HPC and AI facilities. The closing is expected in Q4 2025, subject to regulatory approvals.
Vertiv (NYSE: VRT) announced an agreement to acquire PurgeRite (Purge Rite Intermediate, LLC) for approximately $1 billion in cash at closing, plus an additional compensation of up to $250 million in 2026, contingent upon meeting performance metrics. The company estimates a valuation multiple of around 10x the 2026 EBITDA (including cost synergies) for the base price, which would be less than 10x if the earn-out is paid. Vertiv anticipates that the transaction will be margin accretive to its Services business, which already operates above the corporate average.
With this acquisition, Vertiv expands its portfolio of fluid management and thermal chain services for liquid cooling systems — critical in high-performance data centers (HPC) and in so-called “AI factories”, where thermal densities demand solutions beyond air for heat dissipation.
What PurgeRite Does and Why It Matters
PurgeRite is a leading provider of high-speed mechanical flushing, purging, and filtration for refrigeration loops in mission-critical data centers and other facilities. Its offerings focus on:
- Commissioning and maintenance of circuits with optimal flow, air-free, and with chemically stable coolant.
- Removal of particles and residues (flushing), air/gas purging, and filling with clean fluid to maximize thermal exchange and equipment efficiency.
- Coverage of the entire “thermal chain”, from chillers to coolant distribution units (CDUs), with proprietary engineering and the capacity to meet tight deadlines for hyperscalers and Tier-1 colos.
The cleanliness and stability of the liquid loop are not minor details: they are enabling conditions for greater thermal efficiency, operational resilience, and uptime under high-density loads. Vertiv points out that integrating these design-to-maintenance capabilities strengthens its position as a global provider of next-generation cooling services.
What Changes for Vertiv’s Portfolio
After closing, PurgeRite’s services will integrate with Vertiv’s current liquid cooling services to deliver end-to-end solutions:
- From building to rack: design, commissioning, and maintenance of the complete thermal chain.
- Expected client benefits:
- Improved system performance (heat transfer and equipment efficiency).
- Reduced risk of downtime through standardized processes, detailed planning, and quick execution.
- Expanded service scale with consistent quality worldwide.
PurgeRite is headquartered in Houston, Texas and plans to expand its service center network across North America.
Transaction Details
- Price: approximately $1 billion in cash at closing plus up to $250 million in performance-based cash in 2026.
- Valuation: around 10x EBITDA in 2026 including synergies (less than 10x if earn-out payments are made).
- Impact: margin accretive for Vertiv’s Services division.
- Advisors: Stifel, exclusive financial advisor to Vertiv; Buchanan, Ingersoll & Rooney PC, legal counsel; Harris Williams, financial advisor to PurgeRite; DLA Piper LLP (US), legal counsel to PurgeRite.
- Closing: expected in Q4 2025, subject to usual conditions and regulatory approval under Hart-Scott-Rodino.
Context: The Era of Liquid Cooling in AI
The advancement of AI models and HPC workloads increases rack power and thermal density in data centers, driving the adoption of liquid solutions (direct-to-chip, rear-door heat exchangers, immersion, etc.). During this transition, specialized services —flushes, purging, filtration, fluid chemistry, and monitoring— become key to:
- Achieve design capacity and prevent degradation caused by trapped air, residues, or chemical instability.
- Reduce incidents and shorten maintenance windows in high-availability environments.
- Protect critical hardware investments and extend the lifespan of thermal and IT equipment.
What They Say
Gio Albertazzi, CEO of Vertiv: “This acquisition represents a strategic expansion of our fluid management capabilities, from design to maintenance. PurgeRite’s specialized services and engineering excellence complement our portfolio and strengthen our ability to support high-density computing and AI applications, where efficient thermal management is critical to performance and reliability.”
via: vertiv