FX.co ★ Schneider Electric To Buy 75% Controlling Stake In Motivair For $850 Mln Cash

Schneider Electric (SBGSF.PK), the esteemed French energy management company, announced on Thursday its strategic agreement to acquire a 75% controlling stake in Motivair Corp., a prominent provider of advanced liquid cooling solutions, for a total cash consideration of $850 million. The acquisition includes a future plan to purchase the remaining 25% non-controlling interests in 2028.

The transaction's valuation factors in the benefit of a tax step-up and positions Motivair at a mid-single-digit multiple of its projected fiscal year 2025 revenue.

The deal is anticipated to be finalized in the upcoming quarters, contingent upon customary closing conditions, including the attainment of necessary regulatory approvals.

Motivair is headquartered in Buffalo, New York, and employs over 150 individuals. The company specializes in liquid cooling and sophisticated thermal management solutions for high-performance computing systems.

Upon finalization, Motivair will be integrated into Schneider Electric's Energy Management division. Rich Whitmore, the President and CEO of Motivair, will continue to oversee operations from Buffalo, New York following the transaction closure.

The acquisition aims to enhance Schneider Electric's strategic foothold within the Data Center sector. The company reports that the Data Center & Networks end-market comprised 21% of its fiscal year 2023 consolidated orders, serving as a significant growth driver. Sales within this sector have experienced a robust double-digit compound annual growth rate since 2017, with expectations for continued expansion.

Peter Herweck, CEO of Schneider Electric, commented, "Motivair's distinctive liquid cooling solutions perfectly align with our Data Center cooling strategy, reinforcing our leading position in comprehensive Data Center infrastructure from Grid to Chip and Chip to Chiller."