Acuity to Acquire Parameter Technologies for $675 Million to Expand Data Center Leak Detection Portfolio

Acuity Inc. has reached a definitive agreement to acquire Parameter Technologies for a purchase price of $675 million, a move that significantly deepens the company's presence in the fast-growing data center leak detection and environmental monitoring market as operators increasingly shift toward liquid cooling systems. The transaction is expected to be accretive to Acuity's fiscal 2027 full-year adjusted diluted earnings per share.

Parameter Technologies provides mission-critical leak detection, environmental monitoring and battery monitoring solutions for data centers and other critical infrastructure. Its accurate, location-specific leak detection capabilities help customers identify issues earlier, reduce disruption and protect critical equipment as data centers adopt more complex liquid cooling architectures. Upon closing, Parameter will become part of Distech Controls within Acuity Intelligent Spaces. Parameter shares Distech's go-to-market channels, which include system integrators and distributors, and will deepen Distech's relationships with cooling equipment OEMs.

"Parameter has built a high-performing business that is highly complementary to Distech's portfolio," said Peter Han, President of Acuity Intelligent Spaces. "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."

Parameter expects to deliver sales of approximately $100 million for calendar 2027, representing growth of more than 30 percent year-over-year, and EBITDA margins of approximately 40 percent. The acquisition is expected to be accretive to Acuity Intelligent Spaces revenue growth and margins. "We have built our business around technology that customers trust to protect critical equipment," said Michael Blazes, Chief Executive Officer of Parameter. "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."

Acuity anticipates funding the transaction using $500 million in borrowings and the remainder with cash on the balance sheet. The transaction is expected to close in the second quarter of fiscal 2027, subject to customary closing conditions, including the expiration of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended. PJT Partners is serving as financial advisor to Acuity and Baker McKenzie is providing external legal counsel, while J.P. Morgan and Bank of America are leading the financing.

The deal underscores the growing importance of leak detection and environmental monitoring in data center operations as liquid cooling adoption accelerates. Parameter, headquartered in Fort Collins, Colorado, with engineering and service operations in Raleigh, North Carolina, and sales and service capabilities in Milton Keynes, United Kingdom, develops monitoring and detection solutions through its RLE Technologies and CellWatch brands. Acuity Inc., based in Atlanta, Georgia, is a market-leading industrial technology company with approximately 13,000 associates and operations across North America, Europe and Asia.