Acuity has entered into a definitive agreement to acquire Parameter Technologies for $675 million, expanding its presence in data center infrastructure with leak detection, environmental monitoring, and battery monitoring capabilities.
Parameter provides mission-critical sensing and monitoring technologies used in data centers and other critical infrastructure environments. Its systems are designed to identify the specific location of leaks and other environmental issues, helping operators detect problems earlier, reduce operational disruption, and protect sensitive equipment.
The transaction comes as data center operators increasingly deploy liquid cooling systems to support higher-density computing infrastructure. Acuity sees leak detection and monitoring as a growing opportunity as these cooling architectures become more complex.
Following completion of the acquisition, Parameter will become part of Distech Controls within Acuity Intelligent Spaces.
Acuity said Parameter complements Distech’s existing edge control technologies and shares similar go-to-market channels, including system integrators and distributors. The acquisition is also expected to deepen Distech’s relationships with cooling equipment manufacturers.
Parameter expects to generate approximately $100 million in sales during calendar year 2027, representing growth of more than 30% year over year.
The company also expects EBITDA margins of approximately 40%.
Acuity expects the acquisition to increase Acuity Intelligent Spaces’ revenue growth and margins and to be accretive to Acuity’s fiscal 2027 full-year adjusted diluted earnings per share.
The company plans to finance the transaction with approximately $500 million of borrowings and fund the remainder using cash on its balance sheet.
Closing is expected during Acuity’s second quarter of fiscal 2027, subject to customary conditions including expiration of the applicable waiting period under the Hart-Scott-Rodino Antitrust Improvements Act.
PJT Partners is serving as financial advisor to Acuity, while Baker McKenzie is providing external legal counsel. J.P. Morgan and Bank of America are leading the financing.
The transaction expands Acuity’s data center portfolio beyond edge control and into sensing, monitoring, and leak detection as the company continues building out its Acuity Intelligent Spaces business.
KEY QUOTES:
“Parameter has built a high-performing business that is highly complementary to Distech’s portfolio. By combining Parameter’s sensing, detection and monitoring technology with Distech’s edge controls, we expand our capabilities in data centers and deepen relationships with channel partners. This builds on Distech’s proven ability to solve customer problems and scale adjacent technologies that support durable growth for Acuity Intelligent Spaces.”
Peter Han, President Of Acuity Intelligent Spaces
“We have built our business around technology that customers trust to protect critical equipment. Joining Acuity allows us to build on that success. Together, we can bring our technology to more applications, help customers identify issues earlier and take action to better protect their operations.”
Michael Blazes, CEO Of Parameter Technologies
