Vertiv Is Putting $1.45 Billion Down for AI Power. Nearly Half the Price Is Contingent.
Yahoo Finance ·
Vertiv ( VRT +4.72% ) said Wednesday that it agreed to acquire UtilityInnovation Group (UIG), a designer of on-site power systems for data centers, in a deal worth up to $2.6 billion. But only about $1.45 billion of that is payable in cash at closing. The remaining $1.15 billion is contingent on the acquired business hitting earnings targets. That split is the most telling part of the announcement. Vertiv is spending big on the idea that power availability is becoming the thing that most limits how fast artificial intelligence (AI) data centers get built. But it structured the deal so the seller has to prove nearly half the price before collecting it.
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