ABM Expands Position and Capabilities in Fast-Growing Data Center Industry with Acquisition of Quality Uptime Services
ABM Industries has acquired Quality Uptime Services, a key player in the critical power services industry, for an all-cash price of $119 million. Quality Uptime, based in Bethel, CT, specializes in UPS maintenance and emergency services for data centers and other facilities. Its 130 employees will join ABM’s Mission Critical Solutions group within the Technical Solutions segment.
The acquisition aims to double ABM’s mission-critical revenue in the first year, driven by increased investments in AI and data center infrastructure. Quality Uptime will maintain its brand identity while leveraging ABM's resources in electrification and microgrids. The integration will enhance ABM’s service offerings, including electrical testing, UPS and battery maintenance, and critical cooling solutions.
ABM’s CEO Scott Salmirs highlighted the acquisition's alignment with the company's ELEVATE strategy, focusing on innovation and comprehensive solutions for the growing data center market.
- Acquisition of Quality Uptime Services for $119 million in cash.
- Expected to double ABM’s mission-critical related revenue in the first year.
- Integration enhances ABM’s capabilities in critical infrastructure solutions.
- Alignment with ABM's ELEVATE strategy for long-term growth in a multi-billion-dollar market.
- None.
Insights
The acquisition of Quality Uptime Services by ABM Industries for
Additionally, the acquisition aligns well with the increasing demand for data center infrastructure driven by technologies like artificial intelligence (AI). The statement that this market represents a multi-billion-dollar opportunity highlights the long-term growth potential. However, investors should be mindful of the integration risks and the capital outlay associated with the acquisition.
In summary, while the acquisition brings substantial growth prospects, it comes with its set of challenges. Investors should weigh these carefully.
The acquisition expands ABM’s portfolio in the critical power services sector, which is essential for the uninterrupted operation of data centers. Data centers are increasingly important in our digital world, housing servers that run critical applications. What stands out is the integration of Quality Uptime’s UPS (Uninterrupted Power Supply) maintenance capabilities into ABM’s offerings. UPS systems are vital in preventing data loss and downtime, making this acquisition valuable for clients with mission-critical operations.
Moreover, the addition of Quality Uptime's expertise in electrical testing, switchgear maintenance and power distribution extends ABM’s technical reach, paving the way for enhanced self-performance models. The synergy between ABM's existing services and Quality Uptime’s specialized skills could lead to innovative service offerings and additional business opportunities.
This acquisition is a clear response to the growing market demand for data center infrastructure driven by AI and other technologies. The reference to Quality Uptime's customized preventive and emergency service programs underscores its high-value offerings in a rapidly growing sector. The data center market is expanding as companies increasingly rely on digital services, which makes maintenance and reliability of these facilities more critical than ever.
The acquisition not only strengthens ABM’s market position but also enhances its ability to provide comprehensive solutions. This move could position ABM as a more attractive partner for businesses in need of robust data center support, potentially increasing market share.
However, it’s important to monitor how quickly and effectively ABM can integrate Quality Uptime’s operations. The success of this integration will be pivotal for realizing the projected revenue growth.
NEW YORK, June 24, 2024 (GLOBE NEWSWIRE) -- ABM Industries Incorporated (together with its subsidiaries, collectively referred to as “ABM” “we,” “us” or “our”) (NYSE: ABM), a leading provider of facility solutions, today announced it has acquired Quality Uptime Services, Inc. (“Quality Uptime”), a prominent player in the critical power services industry for an all-cash purchase price of
Quality Uptime, headquartered in Bethel, CT, is a leading independent uninterrupted power supply system (“UPS”) maintenance and UPS battery maintenance company providing customized preventive and emergency service programs for mission-critical data centers and other facilities nationwide. Quality Uptime and its more than 130 employees will become part of ABM’s Mission Critical Solutions group within its Technical Solutions segment. Quality Uptime will initially maintain its brand identity while leveraging ABM’s resources and expertise in electrification infrastructure and microgrids to enhance its services and reach new customers.
With the addition of Quality Uptime, ABM’s Mission Critical Solutions group will offer comprehensive and complementary critical infrastructure solutions for data centers and similar crucial facilities, including electrical testing (NETA), electrical switchgear maintenance, breaker testing, UPS service and maintenance, and battery and power distribution unit service and maintenance. These services complement ABM’s existing robust offerings in microgrid design and construction services, critical cooling, technical project management, facility engineering and cleaning services, resulting in a self-performance model that is an industry leader.
"The acquisition of Quality Uptime is expected to double ABM’s mission critical-related revenue in the first full year of ownership, driven by the surge in artificial intelligence and related investments in data center infrastructure,” said Scott Salmirs, President and Chief Executive Officer of ABM. “Consistent with our ELEVATE strategy, we believe this investment positions ABM to further participate in the long-term proliferation of data centers, which already represents a multi-billion-dollar market. The addition of Quality Uptime aligns with our vision to drive innovation and deliver comprehensive solutions to our clients, and we are excited to welcome their CEO John Raio and this talented and experienced team to ABM.”
"Joining ABM represents an exciting new chapter for us," said John Raio, Chief Executive Officer of Quality Uptime. "Our clients and team will benefit from ABM’s scale and expanded suite of services, as well as the combined expertise of both organizations. We are excited about the opportunities this combination creates and are committed to continuing our tradition of excellence and innovation in the data center industry."
About ABM
ABM (NYSE: ABM) is one of the world’s largest providers of integrated facility solutions. A driving force for a cleaner, healthier, and more sustainable world, ABM provides essential services and forward-looking solutions that improve the spaces and places that matter most. From curbside to rooftop, ABM provides comprehensive facility services that includes janitorial, engineering, parking, electrical & lighting, energy solutions, HVAC & mechanical, landscape & turf, and mission critical solutions. ABM delivers these custom facility solutions to properties across a wide range of industries – from commercial office buildings to universities, airports, hospitals, data centers, manufacturing plants and distribution centers, entertainment venues and more. Founded in 1909, ABM serves over 20,000 clients, with annualized revenue of over
About Quality Uptime Services
Supporting a national client base across multiple industries, Quality Uptime Services provides uninterrupted power supply system (“UPS”) and battery preventive maintenance through a team of factory-trained field service engineers. With over 9 million square feet of raised floor under contract and industry-leading customer retention, clients confidently engage Quality Uptime to maintain
Cautionary Statement under the Private Securities Litigation Reform Act of 1995
This press release contains both historical and forward-looking statements, including, but not limited to, statements addressing the acquisition of Quality Uptime by ABM. In this context, we make forward-looking statements related to future expectations, estimates and projections that are uncertain, and often contain words such as “anticipate,” “believe,” “could,” “estimate,” “expect,” “forecast,” “intend,” “likely,” “may,” “outlook,” “plan,” “predict,” “should,” “target” or other similar words or phrases. These statements are not guarantees of future performance and are subject to known and unknown risks, uncertainties and assumptions that are difficult to predict. Factors that could cause actual results to differ include, but are not limited to, the following: (i) the acquisition of Quality Uptime may not provide the benefits that we anticipate receiving due to any number of factors, including inability to retain Quality Uptime’s existing customers and the inability of Quality Uptime to continue to grow its sales to new and existing customers; (ii) we may not be able to successfully cross-sell business between our existing customers and Quality Uptime’s existing services, or expand services to new customers; and (iii) we may encounter unanticipated costs related to the acquisition. For additional information on these and other risks and uncertainties we face, see ABM’s risk factors, as they may be amended from time to time, set forth in our filings with the Securities and Exchange Commission, including our most recent Annual Report on Form 10-K and subsequent filings. We urge readers to consider these risks and uncertainties in evaluating our forward-looking statements. We caution readers not to place undue reliance upon any such forward-looking statements, which speak only as of the date made. We undertake no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
Contact
Investor Relations:
Paul Goldberg
ir@abm.com
Media:
Michael Valentino
media@abm.com
FAQ
What company did ABM acquire in June 2024?
How much did ABM pay to acquire Quality Uptime Services?
What does Quality Uptime Services specialize in?
How will the acquisition of Quality Uptime Services affect ABM's revenue?
What group within ABM will Quality Uptime Services join?
