Vertiv Holdings Co, a global leader in critical digital infrastructure, announced Monday that it has agreed to acquire Purge Rite Intermediate, LLC (“PurgeRite”) from Milton Street Capital LLC in a deal valued at approximately $1.0 billion in cash at closing, with up to an additional $250 million contingent on meeting 2026 performance targets.
The acquisition, based on the initial $1.0 billion price, equates to about 10.0 times PurgeRite’s expected 2026 earnings before interest, taxes, depreciation, and amortization (EBITDA), including anticipated cost synergies. The multiple is projected to drop below 10.0x if the earn-out is achieved. Vertiv expects the deal to boost margins in its Services business, which already operates above the company’s average.
PurgeRite, a Houston-based provider of mechanical flushing, purging, and filtration services for data centers and mission-critical facilities, specializes in maintaining clean fluid loops essential for liquid cooling systems. As high-performance computing and AI-driven “factories of the future” generate intense heat densities, these services ensure optimal flow, ultra-clean and air-free coolant, and long-term system stability—key to thermal efficiency, resiliency, and uptime in high-density operations.
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The company supports the full thermal chain, from chillers to coolant distribution units (CDUs), with proprietary technologies, engineering expertise, and scalability for demanding schedules. It boasts strong ties with hyperscalers and Tier 1 colocation providers, positioning it as an industry frontrunner in fluid management for AI-enabled data centers.
“This acquisition represents a strategic expansion of Vertiv’s fluid management capabilities, from design through maintenance,” said Vertiv CEO Giordano Albertazzi. “PurgeRite’s specialized services and engineering excellence are expected to complement our existing portfolio and strengthen our ability to support high-density computing and AI applications where efficient thermal management is critical to performance and reliability. This transaction aligns with our priority of deploying capital towards strategic acquisitions that strengthen and expand our leadership across the critical digital infrastructure ecosystem.”
Post-closing, PurgeRite will integrate with Vertiv’s liquid cooling offerings to provide comprehensive end-to-end thermal management solutions, from facility-wide systems to rack-level precision. Customers are anticipated to gain:
Improved heat transfer and equipment efficiency for enhanced system performance.
Lower downtime risks via detailed planning, rapid execution, and best-in-class processes.
Global scalability with uniform quality standards.
PurgeRite, currently headquartered in Houston, Texas, plans to grow its service center network across North America.
Stifel served as Vertiv’s sole financial advisor, with legal counsel from Buchanan, Ingersoll & Rooney PC. Harris Williams advised PurgeRite financially, while DLA Piper LLP (US) provided legal guidance.
The deal remains subject to standard closing conditions, including Hart-Scott-Rodino antitrust clearance, and is slated to close in the fourth quarter of 2025.
