Vertiv Holdings’ wholly owned subsidiary Vertiv Corporation has agreed to purchase Utility Innovation, operating as UtilityInnovation Group (UIG), in a deal that could total up to $2.6bn.
The planned acquisition comprises an upfront payment of approximately $1.45bn in cash on closing.
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There is potential for an additional $1.15bn based on certain earnings before interest, taxes, depreciation and amortisation (EBITDA) targets over 12- and 24-month periods.
The companies announced that the transaction is expected to close in the fourth quarter of 2026, subject to regulatory approvals and closing conditions.
Established in 2020, UIG is based in Raleigh, North Carolina, and maintains its European headquarters in Dublin, Ireland. Its manufacturing footprint spans facilities in North Carolina and New Jersey.
The company develops integrated power systems for behind-the-meter installations and grid-connected energy assets, enabling real-time balancing of electricity load and frequency.
UIG’s portfolio includes microgrid controls, onsite generation orchestration, microgrid-specific switchgear and behind-the-metre power architecture. These additions would extend Vertiv’s power and cooling solutions upstream from grid interconnect to chip level, without reliance on a single generation technology or supplier.
Furthermore, this integrated architecture is expected to enhance Vertiv’s offerings for data centres facing severe utility grid constraints, particularly amid rising demand for intensive AI infrastructure workloads.
UIG founder and CEO Sidney Hinton said: “UIG was founded to solve increasingly complex power challenges for data centre operators through flexible, technology-agnostic architectures.
“Vertiv’s global scale, critical infrastructure portfolio and service capabilities make it a strong strategic fit for what we have built. We believe this combination can expand the reach of UIG’s microgrid controls and power architecture expertise and create greater value for customers as power becomes an increasingly critical constraint on data centre growth.”
Vertiv provides power, cooling, IT infrastructure, software, analytics, and services for data centres, communications networks, and commercial and industrial facilities. Its portfolio supports critical applications from cloud environments to the network edge.
Vertiv CEO Gio Albertazzi said: “For AI data centre operators, competitive advantage increasingly depends on how quickly they can move from site selection to first token. Vertiv has the most complete power and cooling portfolio in the industry.
“With UIG, we anticipate extending that portfolio upstream to the utility interconnect and onsite power sources, creating a coordinated architecture from source to chip without tying customers to a single generation technology or supplier.”
“Together, we anticipate being better positioned to support grid-connected sites, bridge-to-grid deployments and islanded sites supplied by onsite generation, while reducing complexity from site planning through rack-level deployment. This broader capability can help customers accelerate time to power and, ultimately, time to first token.”
Financial advice for Vertiv is being provided by J.P. Morgan Securities, with legal counsel from Buchanan Ingersoll & Rooney, while UIG’s advisors include Morgan Stanley and Davis Polk & Wardwell.
