Data center infrastructure provider Vertiv (VRT) on Thursday announced an agreement to buy Great Lakes Data Racks & Cabinets for $200 million. Vertiv stock rose on the news.
Westerville, Ohio-based Vertiv said the acquisition will enhance its capacity to deliver pre-engineered, AI-ready rack solutions for data centers. Vertiv provides power, cooling and other infrastructure for data centers, communication networks and commercial and industrial facilities.
reat Lakes designs and builds customized data rack enclosures and other infrastructure products for data centers. Headquartered in Edinboro, Pa., Great Lakes has manufacturing and assembly facilities in the U.S. and Europe.
“Our combined capabilities enable us to deliver comprehensive, engineered infrastructure solutions that go beyond basic integration, addressing the complex challenges of next-generation AI technology,” Vertiv Chief Executive Gio Albertazzi said in a news release.
On the stock market today, Vertiv stock climbed 4.6% to close at 131.12.
Evercore ISI analyst Amit Daryanani reiterated his outperform rating on Vertiv stock with a price target of 150.
Vertiv Is On IBD’s Leaderboard
“The asset should be a good fit for Vertiv and help them with a quicker time to market,” Daryanani said in a client note.
He added, “While relatively small in scale (about 200 employees), we view the deal as strategic to Vertiv’s broader competitive positioning. This acquisition supports rising customer demand for pre-integrated rack solutions that combine physical security, intelligent power, cooling, containment, cable management, and DCIM (data center infrastructure management).”
Vertiv stock is on two IBD lists: IBD 50 and Leaderboard.
Source: https://www.investors.com/
