Vertiv is acquiring the Irish engineering company E&I in a deal that could be worth as much as $2bn if all profit milestones are met.
Vertiv, a global provider of digital infrastructure, is buying the Donegal-based company E&I Engineering Ireland for $1.8bn.
Alongside this sum, there is the potential for an additional $200m in cash, based on E&I’s profit milestones in 2022. The deal is expected to close in the fourth quarter of 2021.
E&I was founded in 1986 by Philip O’Doherty and provides electrical switchgear and power distribution systems. It employs more than 2,100 workers and supplies infrastructure for data centres worldwide.
The E&I Engineering management has assured its workers that business will continue to operate as normal with minimal disruption. It also said that as a result of the acquisition, it planned to recruit approximately 100 new staff across E&I’s manufacturing locations in Ireland over the next 12 months.
“This transaction brings together two highly complementary businesses and represents a great outcome for E&I’s employees and customers,” said O’Doherty.
“We are excited to join the Vertiv team and to continue to grow our business through Vertiv’s global reach, strong channel presence and great customer positioning in critical digital infrastructures.”
Vertiv said that E&I’s products in critical power switchgear, uninterruptible power supplies input and output switchgear and busway will fill the gaps in Vertiv’s power infrastructure offerings. It also said that Vertiv’s footprint outside of the US would give E&I a boost in foreign markets, particularly in Europe and Asia.
Vertiv is based in Ohio in the US and employs approximately 20,000 people. It currently serves customers in more than 130 countries worldwide, providing hardware, software and analytics services. This includes data centres, communications networks and industrial facilities.
Vertiv Ireland’s Russ Barker has previously highlighted the potential importance of Ireland in sustainable data centre infrastructure.
“The acquisition of E&I represents a key milestone in Vertiv’s strategy, completing our portfolio of in-building power train offerings for data centres and vital commercial and industrial markets,” said Rob Johnson, Vertiv’s CEO.
“The combination will amplify Vertiv’s growth opportunities and profitability, while enabling Vertiv to deliver differentiated solutions that manage a customer’s entire power infrastructure as an integrated system.
“We look forward to adding E&I’s highly skilled team members to the Vertiv family. Our companies share a strong culture of engineering excellence and innovation and a passion for serving our customers with differentiated products and service.”