Johnson Controls to acquire Canada’s Silent-Aire for up to $870 million

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Johnson Controls to acquire Canada’s Silent-Aire for up to $870 million

An earlier version of this report had an incorrect expected closing date for the deal. It has been corrected.

Johnson Controls International PLC
JCI,
+0.38%
said Friday it has agreed to acquire Silent–Aire, a Canadian private hyperscale data center cooling company, for up to $870 million. Under the terms of the deal, Johnson Controls will pay $630 million upfront and make additional payments based on the reaching of certain milestones. “Silent-Aire specializes in the design, engineering and manufacturing of mission critical custom air handlers and modular data centers for hyperscale cloud and colocation providers,” Johnson Controls said in a statement. The move comes as the pandemic has moved more applications to the cloud and resulted in strong demand for computing power and the expansion of data center infrastructure. “Over the last several years, this trend has overwhelmingly favored the development of hyperscale cloud and colocation facilities,” said the statement. Johnson Controls is expecting the deal to close in the third quarter of fiscal 2021, and to boost adjusted EPS by 7 cents to 9 cents that year. Silent-Aire is based in Edmonton, Alberta and has about 3,000 employees globally. Johnson Controls shares were up 2% premarket and have gained 30% in the year to date, while the S&P 500
SPX,
+0.09%
has gained 9%.

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