VRT's Buyout of Great Lakes Boosts Prospects: A Sign of More Upside?

Vertiv’s VRT cloud and AI-infrastructure business spans across thermal, power and integrated rack systems, supporting high-density compute environments in data centers, communication networks and edge deployments. VRT’s solutions enable scalable, energy-efficient infrastructure that reduces deployment complexity and supports critical digital operations for global enterprises.

Vertiv recently entered into an agreement to acquire Great Lakes Data Racks & Cabinets for $200 million in cash. Great Lakes is a U.S.-based manufacturer of custom, engineered-to-order enclosures with expertise in airflow, cable management and thermal optimization. Its U.S. and European manufacturing presence supports fast, tailored delivery for high-density enterprise, edge and hyperscale environments. The deal, valued at approximately 11.5X of Great Lakes’ projected 2026 EBITDA, is expected to close in the third quarter of 2025, subject to regulatory approvals.

The acquisition is expected to enhance Vertiv’s Integrated Rack Solutions segment, which delivers pre-engineered systems combining enclosures, power and cooling. Integrating Great Lakes' enclosures enables Vertiv to offer factory-assembled, AI-ready racks that improve deployment speed and scalability across next-gen data centers.

As AI and edge-computing infrastructure scales globally, the acquisition positions Vertiv to capture a greater share of demand for integrated, high-density systems, reinforcing its role as a core enabler of digital transformation.

Vertiv Faces Stiff Competition

Vertiv’s expanding focus on AI-ready rack systems is drawing competition from players like Super Micro Computer SMCI and nVent Electric NVT, both scaling their infrastructure offerings to meet the needs of next-gen data centers.

Super Micro Computer is deepening its NVIDIA and Intel partnerships to deliver optimized, high-density server racks tailored for AI workloads. With growing demand for liquid-cooled, rapid-deployment systems, Super Micro Computer is positioning itself as a key player in turnkey AI infrastructure.

nVent Electric is gaining relevance with modular enclosures and engineered thermal integration. Known for serving edge and data center markets, NVT continues to expand its portfolio to address AI-related demands. As Vertiv enhances its rack capabilities through the Great Lakes acquisition, nVent Electric remains a core competitor in scalable, enclosure-driven infrastructure solutions.

Vertiv’s Share Price Performance, Valuation and Estimates

VRT’s shares have increased 13.6% year to date. The broader Zacks Computer & Technology sector has appreciated 9.6% and the Zacks Computers - IT Services industry has plunged 10.2% in the same period.

VRT Performance

Vertiv stock is trading at a premium, with a trailing 12-month Price/Book of 18.45X compared with the Computer and Technology sector’s 10.44X. VRT has a Value Score of D.

VRT Valuation

The Zacks Consensus Estimate for second-quarter earnings is pegged at 83 cents per share, up by a penny over the past 30 days, indicating 23.88% year-over-year growth.

Vertiv Holdings Co. Price and Consensus

Vertiv Holdings Co. price-consensus-chart | Vertiv Holdings Co. Quote

The consensus mark for 2025 earnings is pegged at $3.56 per share, up by a penny over the past 30 days. This indicates a 24.91% increase from the reported figure of 2024.

Vertiv currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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