nVent Electric buys Maverick Power for $1.75 billion in data center push

nVent Electric agreed to acquire data center power distributor Maverick Power for $1.75 billion, adding a power distribution platform as AI-driven demand reshapes the infrastructure supply chain.

"Maverick Power is a great fit for nVent and aligns with our strategy to focus on the high-growth infrastructure vertical," nVent Chair and CEO Beth Wozniak said.

The deal values Maverick Power at roughly 11.5 times anticipated 2026 adjusted EBITDA, or about 10.5 times after the present value of expected tax benefits. The McKinney, Texas-based company employs about 900 people across Texas and Arizona and is expected to generate about $700 million in revenue this year, with a strong backlog and visibility into future demand.

nVent expects the transaction to be accretive to adjusted earnings per share in the first year after closing, which is targeted for the fourth quarter of 2026 pending regulatory approval. The company plans to fund the purchase with cash on hand and new debt, with Bank of America providing committed bridge financing.

The purchase price includes up to $550 million in additional cash tied to Maverick Power hitting performance metrics in 2027 and 2028, a structure that aligns part of the consideration with future results. Maverick Power President and CEO Tom Currier said the combined company will deliver a broader power and cooling portfolio for data center customers.

The acquisition follows nVent's $975 million deal in March to buy the electrical products group business of Avail, which was also expected to add to adjusted EPS in its first year. That announcement was followed by a 2.8 percent drop in nVent shares over the following 24 hours, a reminder that investors have historically weighed deal integration risk against the strategic rationale.

nVent, which trades on the New York Stock Exchange with a market capitalization of about $24.6 billion, has been expanding its data center footprint as hyperscalers pour capital into AI infrastructure. The company's trailing twelve-month price-to-earnings ratio stands at 41.5 times, nearly double its five-year median of 21.4 times, reflecting the growth expectations already baked into the stock.

Analysts have set a median price target of $187 on nVent, with nine covering analysts issuing targets in the past six months. Citigroup's Vladimir Bystricky set a target of $187, while UBS's Neal Burk was the most bullish at $200.

The deal shows the consolidation under way in the power distribution segment, where suppliers of switchgear, switchboards and modular systems are being absorbed by larger electrical equipment makers seeking exposure to data center construction. nVent's acquisition of Maverick Power adds low-voltage and medium-voltage switchgear capabilities that complement its existing cooling and connection products, putting it in closer competition with Vertiv, Schneider Electric and Eaton in the race to supply power-hungry AI facilities.

The data center power distribution market has become a focal point for electrical equipment makers as hyperscalers and cloud providers race to secure capacity for AI workloads. Power delivery and cooling now account for a growing share of data center construction costs, and suppliers with integrated power and thermal management offerings are commanding premium valuations.

Insider activity has been one-sided over the past year, with no insider purchases and sales totaling $51.1 million, including about $7.6 million by Wozniak. Institutional investors have been net buyers, with 553 funds adding shares in the most recent quarter against 386 trimming positions.

The transaction is expected to close in the fourth quarter of 2026, subject to customary closing conditions and regulatory approval. Foley & Lardner is providing legal counsel to nVent, with Bank of America arranging committed bridge financing.

This article is for informational purposes only and does not constitute investment advice.