(photo: Raysonho)
12.04.2021, 10:03

Acquisition Expands Johnson Controls Hyper-scale Data Centre Capabilities

Company News, Heating, Ventilating & Air Conditioning (HVAC), EMEA, Mergers & Acquisitions, United Kingdom

Johnson Controls has agreed to acquire Silent-Aire, a global leader in hyper-scale data centre cooling and infrastructure, in an all-cash transaction valued at up to US $870 million.


The deal will include an upfront payment of approximately US $630 million and additional payments to be made subject to the achievement of post-closing earn out milestones.


Silent-Aire specialises in the design, engineering and manufacturing of mission critical custom air handlers and modular data centres for hyper-scale cloud and colocation providers. Silent-Aire’s portfolio of data centre solutions allow for rapid deployment of critical infrastructure in flexible configurations, with a focus on quality, scalability, and speed-to-market. Silent-Aire’s revenue for fiscal year 2021 (May) is expected to approximate US $650 million.


The continuous migration of applications to the cloud (SaaS) has resulted in unprecedented demand for computing power and the rapid expansion of data centre infrastructure. Over the last several years, this trend has overwhelmingly favoured the development of hyper-scale cloud and colocation facilities. Hyper-scale providers have unique capabilities in deploying large-scale computing power with increasingly more efficient, more rapidly deployed solutions and with greater geographic reach. To accomplish this, hyper-scalers require trusted global partners, such as Silent-Aire, that provide highly efficient, sustainable and reliable products along with consistent and dependable execution. 


George Oliver, Johnson Controls chairman and CEO, comments: "With Silent-Aire, Johnson Controls has a significant opportunity to increase our focus on the data centre vertical and accelerate growth in this attractive end market by combining the strengths of our global scale in manufacturing and service, with leading-edge innovation and a broad portfolio of technologies dedicated to serving hyper-scale providers.


"This acquisition perfectly aligns with several of our key strategic growth initiatives and underscores our focus on creating shareholder value.


"We are incredibly excited to welcome Silent-Aire to the Johnson Controls family as we look to build upon their success of nearly 30 years of innovation, operational expertise, and deep customer relationships."


Lindsey Leckelt, Silent-Aire co-CEO, says: "Silent-Aire grew up with the cloud and our DNA translates what it means to be a Hyper-scale Data Centre Company.


"Being an innovative partner with early adopters, we broke through traditional design barriers that pushed energy initiatives in what led to how most Hyper-scale Data Centres are cooled and engineered today.


"The culture in our business captures this unique skill set and is scaled through to our engineering, operations, and manufacturing teams to keep up with the explosive growth of cloud providers. Johnson Controls shares our vision to scale as a Data Centre Platform business, which will enable us to serve our partners globally."


Dan Leckelt, co-CEO, adds: "Sustainability has been a major focus as we’ve grown our family business throughout our history. Maintaining our growth to match our customers’ demands has taken us from 30 employees to 3,000 over this period.


"Through this growth, our global expansion to Europe provided a glimpse of the opportunity the rest of the world has to offer. As a measure of continuing long-term sustainability for our customers and employees; while pushing technological advances fostering environmental excellence, a partnership with Johnson Controls Inc. provides Silent-Aire the best opportunity to succeed."


Silent-Aire is headquartered in Edmonton, Alberta and has approximately 3,000 employees globally, with a legacy of providing mission critical data centre technology, a commitment to customer-centricity and a clear focus on sustainability. The company's European headquarters are in Dublin, Ireland.


Subject to the receipt of regulatory approval and customary closing conditions, the transaction is expected to close in the fiscal third quarter of 2021. The transaction is expected to be immediately accretive and add US $0.07 to US $0.09 to Johnson Controls adjusted EPS from continuing operations in fiscal 2022.


An accompanying slide presentation with additional details on the transaction has been made available on the "Events & Presentations" section of the Johnson Controls website at





Article rating:

vote data

Leave a reply

(L to R): Steve Parr, managing director and Phillip McGee, operations director, Parr Facilities Management, at the newly opened store. (photo: Parr Facilities Management)
News Editor  - 05.05.2021

Supporting Home Bargains in Northern Ireland

Belfast-based Parr Facilities Management is delivering fit out works and FM support at a newly opened 30,000SF Home Bargains store location in Newtownabbey, County Antrim.

 (photo: ThisIsEngineering)
News Editor  - 06.05.2021

Unlocking Women's Potential to Lead Safely

In a bid to support what they consider to be an underrepresented group in Health & Safety, RoSPA and L’Oréal have partnered for the launch of a dedicated Leading Safely for Women training programme.

 (photo: )
News Editor  - 28.04.2021

Team HARD BTCC Racing Sponsorship

Life safety business Evolution is sponsoring Team HARD Racing CUPRA Leon sports cars in this year's Kwik Fit British Touring Car Championship.

 (photo: )
News Editor  - 14.05.2021

How're You Testing Your Security Cameras?

Triplett Test Equipment's innovative CamView5 IP Pro portable all-in-one-camera tester is set to become an essential tool for CCTV installers and technicians.

 (photo: SWARCO)
News Editor  - 13.05.2021

Angus Council Speed Warning Sign Installation

A series of intelligent Vehicle Activated Signs (VAS) is helping to keep drivers safe by warning them if they are driving too fast and advising them of the speed limits in place throughout the...