Advent to buy majority stake in data center equipment maker LayerZero
The majority stake in the Aurora, Ohio-based company is valued at about $1 billion, a source familiar with the matter told Reuters.
A surge in use of artificial intelligence services such as ChatGPT is driving demand for data centers, and with it, investment in power infrastructure as companies race to expand energy capacity.
LayerZero's products include power distribution units, remote power panels and static transfer switches, which ensure the safe and reliable distribution of electricity for facilities such as data centers.
"As data centers evolve to support the growing needs of AI and high-performance computing, our role has become even more important," LayerZero co-founder Milind Bhanoo said.
After the deal closes, LayerZero's founders, Bhanoo and James Galm, will remain minority equity holders in the company.
Advent will support LayerZero in scaling up manufacturing capacity, expanding its customer base and growing service capabilities.
Annette Clayton, an operating partner at Advent and former CEO of Schneider Electric North America, will serve as LayerZero Chair after the deal closes.
Private equity deal-making is rebounding after a pause induced by tariffs and global uncertainty, driven by renewed buying appetite and improving confidence in the market's trajectory.
Earlier this month, Advent International announced a 4.4 billion pound ($6.03 billion) takeover of Spectris, a London-listed precision instruments maker.
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