Acuity has agreed to buy Parameter Technologies for $675 million, adding leak detection and environmental monitoring for data centres to its Intelligent Spaces business, with completion expected in the second quarter of fiscal 2027.
Acuity has reached a definitive agreement to acquire Parameter Technologies for $675 million, expanding its data-centre business from edge controls into leak detection, sensing and monitoring. Parameter will join Distech Controls within Acuity Intelligent Spaces once the deal closes, which the companies expect in the second quarter of fiscal 2027.
Parameter makes leak detection, environmental monitoring and battery monitoring equipment for data centres and other critical infrastructure. Acuity says the systems pinpoint leaks early, limit disruption and protect equipment as data centres adopt more complex liquid cooling, a shift that makes a small water leak a much larger operational risk than it was in air-cooled halls.
The price is set against a business Acuity expects to deliver about $100 million of sales in calendar 2027, up more than 30 percent year on year, at earnings before interest, tax, depreciation and amortisation margins of about 40 percent. Acuity also expects the deal to add to its fiscal 2027 full-year adjusted diluted earnings per share, though it has not disclosed how much of the $675 million will be paid in cash and how much in its own shares.
Acuity's own announcement confirms the price, the expected closing window and the earnings and sales figures, and independent trade coverage of the deal confirms the same price and structure. What remains undisclosed is the split between cash and shares and therefore the implied valuation of Parameter as a whole, so the accretion forecast cannot yet be tested against the price paid.
The deal fits a clear direction for Acuity Intelligent Spaces. Its president, Peter Han, said Parameter's sensing and monitoring technology complements Distech's edge controls and deepens relationships with cooling equipment makers and channel partners, moving the unit further into the infrastructure that keeps data centres running rather than the lighting fixtures Acuity was built on.
Completion in early 2027 is the next test. Until the cash and share split is disclosed, investors can judge the price only against Parameter's forecast sales and margins, and the value of the deal will turn on whether that growth survives the integration into Distech.