Wesco International Announces Agreement to Acquire Ascent, a Premier Provider of Data Center Facility Management Services

Rhea-AI Summary

Wesco International (NYSE:WCC) has announced a definitive agreement to acquire Ascent for $185 million on a cash-free, debt-free basis. Ascent, headquartered in St. Louis, Missouri, is a premier provider of data center facility management services with $115 million in trailing twelve-month sales and a 30% three-year sales CAGR. The company specializes in data center operations, including AI data center design, liquid cooling implementation, maintenance, and critical systems repairs. Ascent employs over 330 people across the US and Canada and offers a proprietary Navigator platform for infrastructure management. The acquisition is expected to close in Q4 following regulatory approval.

Positive

• Acquisition price of $185 million for a company with $115 million in trailing twelve-month sales
• Target company shows strong growth with 30% three-year sales CAGR
• Strengthens Wesco's data center solutions portfolio with specialized services
• Expands capabilities in high-growth AI data center and liquid cooling markets
• Adds 330 skilled employees and proprietary technology platform

Negative

• Regulatory approval pending, which could delay closing
• Integration costs and risks not disclosed

News Market Reaction

-1.98%

1 alert

-1.98% News Effect

On the day this news was published, WCC declined 1.98%, reflecting a mild negative market reaction.

Data tracked by StockTitan Argus on the day of publication.

PITTSBURGH, Oct. 31, 2024 /PRNewswire/ -- Wesco International (NYSE:WCC) today announced it has entered a definitive agreement to acquire Ascent LLC., a privately held company headquartered in St. Louis, Missouri and a premier provider of data center facility management services for a cash-free, debt-free purchase price of $185 million.

Ascent, known for its specialized data center facility and property management services, has $115 million in trailing twelve-month sales and a 30% three-year sales compound annual growth rate. Ascent delivers solutions for every aspect of mission critical data center operations and infrastructure – from next generation AI data center design and builds all the way through the operations and maintenance life cycle. Their services include liquid cooling design and implementation, facility-wide maintenance, critical systems repairs, emergency services, and management of third-party maintenance workflows. In addition, Ascent's proprietary Navigator platform provides an integrated client dashboard designed to support critical data center infrastructure and facilities.

"This services-based acquisition strengthens our leading data center solutions portfolio for our customers," said John Engel, Chairman, President and CEO of Wesco. "In addition to site operations, Ascent's engineering expertise and professional services further enhance our solutions that span the entire lifecycle of the data center."

"With more than 330 employees in the United States and Canada, Ascent's strong team, innovative technology, and extensive customer base make it an ideal pairing with Wesco Data Center Solutions. This acquisition will allow us to further extend our end-to-end service offerings — including advanced liquid cooling solutions — in collaboration with our supplier and contractor partners to meet the demands of the rapidly growing data center market," said Bill Geary, Executive Vice President and General Manager, Wesco Communications and Security Solutions.

The acquisition is anticipated to close in the fourth quarter following customary regulatory approval.

About Wesco
Wesco International (NYSE: WCC) builds, connects, powers and protects the world. Headquartered in Pittsburgh, Pennsylvania, Wesco is a FORTUNE 500^® company with more than $22 billion in annual sales and a leading provider of business-to-business distribution, logistics services and supply chain solutions. Wesco offers a best-in-class product and services portfolio of Electrical and Electronic Solutions, Communications and Security Solutions, and Utility and Broadband Solutions. The Company employs approximately 20,000 people, partners with the industry's premier suppliers, and serves thousands of customers around the world. With millions of products, end-to-end supply chain services, and leading digital capabilities, Wesco provides innovative solutions to meet customer needs across commercial and industrial businesses, contractors, government agencies, educational institutions, telecommunications providers, and utilities. Wesco operates nearly 800 branches, warehouses and sales offices in more than 50 countries, providing a local presence for customers and a global network to serve multi-location businesses and global corporations.

Media Contact:
Jennifer Sniderman
Vice President, Corporate Communications
717-579-6603

 

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SOURCE Wesco International

FAQ

How much is Wesco (WCC) paying to acquire Ascent?

Wesco International is acquiring Ascent for $185 million on a cash-free, debt-free basis.

What are Ascent's current sales figures before the WCC acquisition?

Ascent has $115 million in trailing twelve-month sales and has maintained a 30% three-year sales compound annual growth rate.

When is the Wesco-Ascent acquisition expected to close?

The acquisition is anticipated to close in the fourth quarter of 2024, subject to customary regulatory approval.

What services does Ascent bring to Wesco's portfolio?

Ascent brings data center facility management services, including AI data center design, liquid cooling implementation, maintenance, critical systems repairs, and their proprietary Navigator platform for infrastructure management.