Vertiv Acquires Centrifugal Chiller Technology to Broaden its Global Solutions Portfolio in Support of High-Performance Compute and AI

Rhea-AI Summary

Vertiv (NYSE: VRT) announced its Chinese subsidiary has acquired certain assets and technologies of BiXin Energy Technology (BSE), a manufacturer of chillers and heat-related solutions. BSE specializes in oil-free, magnetic-bearing centrifugal water-cooled and air-cooled chillers with cooling capacities up to 5.5 MW. Founded in 2010, BSE brings established presence in China and Asian markets, along with industry patents and R&D capabilities.

The acquisition strengthens Vertiv's portfolio in support of high-performance compute and AI applications globally. Since early 2024, Vertiv has partnered with BSE to manufacture Vertiv-branded products for customers in China and Asia. BSE is an AHRI-certified test facility and a China High and New-Technology Enterprise, with its products carrying AHRI and CRAA certifications.

Positive

• Acquisition expands Vertiv's technology portfolio with high-capacity cooling solutions up to 5.5 MW
• Strengthens presence in Asian markets through established brand and distribution
• Gains access to BSE's industry patents and R&D capabilities
• Enhances product offering for high-growth AI and high-performance computing sectors

Negative

• None.

Insights

Technology Investment Analyst

The acquisition of BSE's chiller technology assets marks a strategic expansion in Vertiv's cooling solutions portfolio, particularly significant given the surging demand from AI and high-performance computing sectors. BSE's advanced centrifugal chiller technology, capable of handling up to 5.5 MW of cooling capacity, positions Vertiv to better serve the rapidly growing data center market where cooling efficiency is becoming increasingly critical.

The deal strengthens Vertiv's competitive position in several ways: First, it provides immediate access to BSE's patented technologies and R&D capabilities, accelerating Vertiv's technological advancement in the cooling space. Second, it enhances Vertiv's presence in the strategic Asian market, where data center growth is particularly robust. Third, the AHRI and CRAA certifications of BSE's products add credibility and market access advantages.

This acquisition aligns with the broader industry trend of increasing investment in cooling infrastructure to support AI workloads, which typically generate 2-3x more heat than traditional computing. The timing is particularly advantageous as the AI infrastructure buildout is accelerating globally.

M&A Financial Analyst

This bolt-on acquisition represents a well-timed strategic move to capture market share in the rapidly expanding data center cooling segment. While financial terms weren't disclosed, the transaction's value lies in its technology acquisition and market positioning rather than immediate revenue impact. The deal structure, focusing on asset and technology acquisition through a Chinese subsidiary, suggests a tax-efficient approach while minimizing operational integration risks.

The existing manufacturing partnership since early 2024 reduces execution risk, as both companies have already established operational synergies. The acquisition provides Vertiv with valuable intellectual property and specialized R&D capabilities in a critical growth segment, potentially leading to margin expansion through premium product offerings and reduced development costs.

China-based company BSE specializes in both water-cooled and air-cooled systems with up to 5.5 MW of cooling capacity, as well as heat recovery and reuse solutions

COLUMBUS, Ohio--(BUSINESS WIRE)-- Vertiv (NYSE: VRT), a global provider of critical digital infrastructure and continuity solutions, today announced the acquisition by its Chinese subsidiary of certain assets and technologies of BiXin Energy Technology (Suzhou) Co., Ltd (BSE), a manufacturer of chillers, heat pumps, heat-recovery solutions and air-handling units. Focused on expanding the Vertiv chiller family, the acquisition strengthens Vertiv’s portfolio of critical technologies and solutions in support of high-performance compute and AI applications globally. Founded in 2010, BSE brings to Vertiv an established and field-proven presence in the China market and other Asian regions, along with industry patents, advanced technology solutions and strong research and development capabilities that will reinforce Vertiv’s global offering.

Vertiv™ air-cooled chiller unit (Photo: Business Wire)

BSE’s core product offerings include oil-free, magnetic-bearing centrifugal water-cooled and air-cooled chillers incorporating pumped-refrigerant-economization technology, with cooling capacities of up to 5.5 MW. BSE is a leader in the Asia region on centrifugal technology, which is designed to provide high efficiency, low maintenance, quiet operation and high reliability.

“This acquisition supports our capital allocation strategy, which includes adding technologies that are early in the maturity curve to our portfolio,” said Giordano Albertazzi, Chief Executive Officer, Vertiv. “BSE’s solutions and technologies complement and reinforce Vertiv’s existing chiller portfolio and will assist us in addressing growing air and liquid cooling demand to support high-performance compute and AI. Vertiv has the most complete critical digital infrastructure portfolio and BSE further strengthens our technology offerings that we can provide to customers globally.”

Since early 2024, Vertiv has partnered with BSE to manufacture Vertiv-branded products for existing customers in China and throughout Asia. BSE is an Air Conditioning, Heating, Refrigeration Institute (AHRI) certified test facility, a China Refrigeration and Air-Conditioning Industry Association (CRAA) member and a China High and New-Technology Enterprise. Its products carry the AHRI-certified and CRAA-certified product labels. The combination of engineering, test and technology expertise in centrifugal chillers is complementary to Vertiv’s global chiller product portfolio.

“We’ve enjoyed an outstanding partnership with Vertiv and look forward to becoming a part of the company,” said York Zha, BSE’s CEO. “We’re excited to combine our portfolio with Vertiv’s to deliver a highly efficient and reliable offering of chiller and heat-recovery and reuse solutions for data center customers globally.”

About Vertiv

Vertiv (NYSE: VRT) brings together hardware, software, analytics and ongoing services to enable its customers’ vital applications to run continuously, perform optimally and grow with their business needs. Vertiv solves the most important challenges facing today’s data centers, communication networks and commercial and industrial facilities with a portfolio of power, cooling and IT infrastructure solutions and services that extends from the cloud to the edge of the network. Headquartered in Westerville, Ohio, USA, Vertiv does business in more than 130 countries. For more information, and for the latest news and content from Vertiv, visit Vertiv.com.

Forward-Looking Statements

This release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27 of the Securities Act, and Section 21E of the Securities Exchange Act. These statements are only a prediction. Actual events or results may differ materially from those in the forward-looking statements set forth herein. Readers are referred to Vertiv’s filings with the Securities and Exchange Commission, including its most recent Annual Report on Form 10-K and any subsequent Quarterly Reports on Form 10-Q for a discussion of these and other important risk factors concerning Vertiv and its operations. Vertiv is under no obligation to, and expressly disclaims any obligation to, update or alter its forward-looking statements, whether as a result of new information, future events or otherwise.

View source version on businesswire.com: https://www.businesswire.com/news/home/20241219522857/en/

Sara Steindorf – Fleishman Hillard

Sara.Steindorf@fleishman.com

Source: Vertiv Holdings Co

FAQ

What cooling capacity do BSE's chillers offer to Vertiv's portfolio?

BSE's chillers offer cooling capacities of up to 5.5 MW, incorporating oil-free, magnetic-bearing centrifugal technology with pumped-refrigerant-economization.

How does the BSE acquisition align with Vertiv's strategic goals?

The acquisition aligns with Vertiv's capital allocation strategy of adding early-maturity technologies to their portfolio, specifically strengthening their cooling solutions for high-performance computing and AI applications.

What certifications does BSE bring to Vertiv's portfolio?

BSE is an AHRI-certified test facility, a CRAA member, and a China High and New-Technology Enterprise, with products carrying AHRI and CRAA certifications.

When did Vertiv begin its partnership with BSE before the acquisition?

Vertiv began partnering with BSE in early 2024 to manufacture Vertiv-branded products for existing customers in China and throughout Asia.

What specific technologies does VRT gain through the BSE acquisition?

VRT gains BSE's water-cooled and air-cooled chiller systems, heat pumps, heat-recovery solutions, and air-handling units, along with their associated patents and R&D capabilities.