- CoolIT Systems is a Calgary-based provider of scalable liquid cooling solutions for the data center and desktop markets
- KKR’s investment, done through its global impact strategy, will support the company’s ability to scale and serve its global customers
- As part of the deal CoolIT will expand its equity ownership program to make all employees owners of the business
KKR has agreed to acquire CoolIT Systems, a Calgary-based provider of scalable liquid cooling solutions for the data center and desktop markets.
No financial terms were released for the deal, which is expected to close in the second quarter of 2023.
Founded in 2001, CoolIT has developed patented split-flow direct liquid cooling technology designed to improve equipment reliability and lifespan, decrease operating cost, lower energy demand and carbon emissions, reduce water consumption and allow for higher server density than legacy air-cooling methods. The company is led by CEO Steve Walton.
KKR’s investment, done through its global impact strategy, will support CoolIT’s ability to scale and serve its global customers.
On the deal, Evan Kaufman, a director at KKR, said in a statement, “By combining our manufacturing and decarbonization expertise with CoolIT’s track record of product innovation, we expect to further scale its best-in-class direct liquid cooling solution to meet the anticipated demand for higher density, more energy efficient data centers. Importantly, we look forward to working with Steve and the entire CoolIT management team to invest additional capital and resources into expanding its cooling solutions across new applications, customers and end markets.”
As part of the deal, CoolIT will expand its equity ownership program to make all employees owners of the business. Since 2011, KKR portfolio companies have awarded billions of dollars of total equity value to more than 50,000 non-management employees across nearly 30 companies, the firm reported.
Founded in 1976, New York-based KKR is one of the market’s largest private equity firms. At the end of December 2022, it held assets managed of $504 billion.