Vertiv is in the process of acquiring E&I Engineering Group, a manufacturer of switchgear, busway, and modular power solutions.
According to Vertiv’s announcement, the acquisition “completes” Vertiv’s data centre offering and increases its addressable market by $7 billion. Vertiv will pay $1.8 billion upfront, consisting of $1.17 billion in cash and $630 million in Vertiv stock – with an additional $200 million in cash available if the company meets its 2022 profit targets.
E&I Group was founded in 1986 by Philip O’Doherty, who continues to serve as CEO. The company has grown to be known for its in-house integrated power designs and tailored technology offerings, with annual sales of approximately $460 million and approximately 2,100 employees.
“The acquisition of E&I is a significant step forward in Vertiv’s strategy, as it completes our portfolio of in-building power train offerings for data centres and critical commercial and industrial markets,” Vertiv CEO Rob Johnson said. “The combination will significantly expand Vertiv’s growth opportunities and profitability, while also enabling Vertiv to offer differentiated solutions that manage a customer’s entire power infrastructure as a single integrated system. We’re excited to welcome E&I’s highly qualified team members to the Vertiv family. Our companies share a strong culture of engineering excellence and innovation, as well as a commitment to providing differentiated products and services to our customers.”
This is Vertiv’s first acquisition since the company went public through a merger with GS Holdings. “Throughout the process of identifying, valuing, due diligence, and integration planning, our team adhered to acquisition best practises,” said chairman Dave Cote. “E&I is a once-in-a-generation opportunity for Vertiv and fits well within the Vertiv portfolio. I’m excited about the prospect of these two fantastic businesses merging.”
“This transaction brings together two highly complementary businesses and represents an excellent outcome for E&I’s employees and customers,” O’Doherty said. We are excited to join the Vertiv team and to leverage Vertiv’s global reach, strong channel presence, and strong customer positioning in critical digital infrastructures to continue growing our business.”