Johnson Controls International plc plans to acquire
Silent-Aire, a maker of air handlers and modular data centers, in a deal valued at up to $870 million. The all-cash deal, expected to close by the end of June, includes an upfront payment of $630 million and additional payments based on earnout milestones. Based in Edmonton, Alberta, Silent-Aire has around 3,000 employees globally along with four sales and service locations and 13 manufacturing facilities across Canada, the U.S. and Europe. The company’s key products include direct evaporative cooling units, computer room air handlers, modular data centers and modular equipment rooms. It serves hyperscale data center customers, a segment of the market that includes companies like Microsoft, AWS, Apple, Google and Facebook. Silent-Aire has seen a rapid increase in its revenues, from around $90 million in fiscal 2015 to an estimated $650 million in its current fiscal year. "Silent-Aire grew up with the cloud and our DNA translates what it means to be a Hyperscale Data Center Company," said Lindsey Leckelt, co-chief executive officer of Silent-Aire. "Being an innovative partner with early adopters, we broke through traditional design barriers that pushed energy initiatives in what led to how most Hyperscale Data Centers are cooled and engineered today.” Johnson Controls says the deal will help it establish a leadership position in hyperscale data center technology and expand its portfolio of cooling solutions. JCI will also help Silent-Aire expand its reach in Asia and Europe while also leveraging JCI’s service and digital capabilities. "With Silent-Aire, Johnson Controls has a significant opportunity to increase our focus on the data center vertical and accelerate growth in this attractive end market by combining the strengths of our global scale in manufacturing and service, with leading-edge innovation and a broad portfolio of technologies dedicated to serving hyperscale providers," said George Oliver, Johnson Controls chairman and chief executive officer.
