Vertiv Acquires Great Lakes for $200M, Strengthening Data Infrastructure Offerings

Vertiv, a global provider of critical digital infrastructure, has agreed to acquire Great Lakes Data Racks & Cabinets for $200 million. The acquisition is expected to strengthen Vertiv's leadership in high-density integrated infrastructure offerings, enhance its capacity to deliver pre-engineered, future AI-ready rack solutions, and create opportunities for cost synergies and cross-selling. The purchase price represents approximately 11.5x expected 2026 EBITDA, including synergies.

Vertiv (NYSE: VRT), a leading provider of critical digital infrastructure, has announced a strategic acquisition of Great Lakes Data Racks & Cabinets for $200 million. The acquisition is expected to significantly bolster Vertiv's leadership in high-density integrated infrastructure offerings and enhance its ability to deliver pre-engineered, future AI-ready rack solutions.

Great Lakes, established in 1985 and headquartered in Edinboro, PA, specializes in designing and manufacturing customized data rack enclosures and integrated infrastructure solutions. The purchase price of approximately $200 million represents an 11.5x multiple of the company's expected 2026 earnings before interest, taxes, depreciation, and amortization (EBITDA), including synergies and cross-selling opportunities [1].

The acquisition is expected to close in the third quarter of 2025, subject to customary closing conditions and regulatory approvals. The integration of Great Lakes' expertise with Vertiv's existing portfolio will deliver significant customer benefits, including consolidated infrastructure sourcing, faster deployment through pre-engineered solutions, enhanced operational efficiency with factory integration of Vertiv™ power and cooling solutions, improved scalability for AI and edge computing applications, and comprehensive support through Vertiv's global service network.

Vertiv's CEO, Gio Albertazzi, commented on the acquisition, stating, "Great Lakes is a leading rack manufacturer with an extensive portfolio of high-end rack solutions and innovation capabilities that are essential in an increasingly demanding high-density AI infrastructure environment. With the acquisition of Great Lakes, Vertiv strengthens its position as a premier technology solutions provider in the critical white space market. 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" [1].

The acquisition follows Vertiv's broader strategy of deepening its ecosystem partnerships to enhance delivery, boost efficiency, and expand global reach. Vertiv's strategic partnerships with companies like NVIDIA, Intel, and Compass Datacenters have been instrumental in accelerating its top-line growth. Revenues increased by 24.2% year over year to $2.04 billion in the first quarter of 2025, with expectations for the second quarter ranging between $2.325 billion and $2.375 billion, implying approximately 20% year-over-year growth at mid-point [2].

However, Vertiv faces stiff competition in the AI infrastructure space from companies like Hewlett Packard Enterprise (HPE) and Super Micro Computer (SMCI), which are also scaling strategic alliances to meet surging demand from data centers and hyperscalers [2].

In conclusion, Vertiv's acquisition of Great Lakes Data Racks & Cabinets represents a strategic move to strengthen its position in the high-growth AI infrastructure market. The purchase price of approximately 11.5x expected 2026 EBITDA (including synergies) appears reasonable for a specialized manufacturer with custom capabilities in high-density rack solutions - a critical component for modern data centers supporting AI workloads. The deal logic centers on vertical integration, allowing Vertiv to offer more comprehensive end-to-end solutions rather than just individual components.

References:
[1] https://www.prnewswire.com/news-releases/vertiv-to-acquire-custom-rack-solutions-manufacturer-302507825.html
[2] https://sg.finance.yahoo.com/news/vrts-strong-global-ties-drive-123900653.html