Vertiv sells ASCO to Schneider Electric for $1.25 Billion

Jul 31, 2017
by Josh Anderson

PARIS, FRANCE — Schneider Electric has bought Vertiv’s ASCO business, for a whopping $1.25bn USD. This acquisition sends a strong signal that Schneider Electric plans to secure their position as the global leader in the switch technologies market, as well as puts Schneider in a prime location in the data center space. Vertiv will also enjoy the timing of the deal, coming off a restructuring after being acquired by Platinum Equity under the name of Emerson Network Power, then selling its data center business.

“ASCO brings to Schneider Electric a well-organised brand in North America, a strong level of know-how, prescription skills and network and diversified customer base,” said Jean-Pascal Tricoire, Chief Executive for Schneider Electric, in a statement.

CEO Rob Johnson of Vertiv said, “This sale is a significant step forward in our evolution as the premier provider of digital critical infrastructure solutions…this is consistent with our strategy of focusing on our customers and aligning the strengths of our organization.”

Meanwhile, Jacob Kotzubei, Partner at Platinum Equity said, “The sale of ASCO will further support those efforts and help Vertiv continue focusing on its core business. Given the amount of cash proceeds expected to be generated from the sale, we will evaluate a number of capital structure alternatives that would be beneficial to all stakeholders.”

Key data points:

  • ASCO’s Automatic Transfer Switches (ATSs) monitor current from two different sources, switching between them when one drops below a desirable level. A 2,000-employee company, ASCO was founded in Baltimore. It posted $468 million in revenue last year.
  • Vertiv designs and builds infrastructure for data centres and other communications networks and facilities. They employ 20,000 personnel worldwide and have contracted with firms such as AT&T and Microsoft.
  • Schneider recently announced a new cooling system that uses indirect evaporative technology and provides efficient, cost-effective cooling.
  • This all-cash deal is expected to close in the latter part of 2017.
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