nVent Electric plc plans to acquire CIS Global LLC, a Tucson-AZ-based provider of mission-critical power and server rack-mount slide products for the rapidly growing data center and networking industries. The transaction is expected to be completed by the third quarter for a cash purchase price of approximately $200 million, subject to adjustments.
nVent said in the press release that market drivers for the growth of the data center and networking market segments include 5G wireless and demand for artificial intelligence and edge computing. "We are excited about the strong team, technology and innovation at CIS Global. Combined with our Enclosures solutions, we can help data centers across the world improve operational efficiency and optimize energy utilization with leading technologies in heat and power management, both critical for electrical resiliency," said nVent Enclosures President Joe Ruzynski in the press release. "Our priority after closing will be to serve and grow the CIS Global customer base with innovative solutions."
The release said the addition of CIS Global will strengthen nVent’s ability to provide protection, with innovative products to help manage heat and provide power solutions in data centers. It’s expected that CIS Global operate as a separate business within the nVent Enclosures segment. The company’s portfolio of electrical brands includes nVent Caddy, Erico, Hoffmann Raychem, Schroff and Tracer.