International. Johnson Controls has signed a definitive agreement to acquire A Silent-Aire, a specialist in modular critical infrastructure solutions and hyperscale data center cooling. The company explained that this cash transaction is valued at up to $870 million, including an initial payment of approximately $630 million and additional payments to be made subject to the achievement of post-closing earnings milestones.
Silent-Aire specializes in the design, engineering, and manufacturing of mission-critical custom air controllers and modular data centers for hyperscale colocation and cloud providers. Silent-Aire's portfolio of data center solutions enables rapid deployment of critical infrastructure in flexible configurations, with a focus on quality, scalability and speed to market. Silent-Aire's revenue for fiscal year 2021 (May) is expected to approach $650 million.
"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 cutting-edge innovation and a broad portfolio of technologies dedicated to serving hyperscale providers." said George Oliver, president and chief executive officer of Johnson Controls. "This acquisition aligns perfectly with several of our key strategic growth initiatives and underscores our focus on creating shareholder value. We are incredibly excited to welcome Silent-Aire to the Johnson Controls family as we look to build on its success of nearly 30 years of innovation, operational expertise and deep customer relationships."
"Silent-Aire grew with the cloud and our DNA translates what it means to be a hyperscale data center company," said Lindsey Leckelt, co-CEO of Silent-Aire. "By being an innovative partner with early adopters, we broke down the traditional design barriers that drove energy initiatives in what led to how most hyperscale data centers are cooled and designed today," he continued. "Our business culture captures this unique skill set and extends to our engineering, operations and manufacturing teams to keep up with the explosive growth of cloud providers. Johnson Controls shares our vision of scaling as a data center platform business, which will enable us to serve our partners globally."
Silent-Aire is headquartered in Edmonton, Alberta and has approximately 3,000 employees worldwide, with a legacy of delivering mission-critical data center technology, a commitment to customer focus, and a clear focus on sustainability.
