Calgary-based CoolIT acquired by Ecolab for $4.75 billion amid AI-driven data centre growth

Calgary-based CoolIT Systems Inc., a leading supplier of liquid cooling technologies for data centres, has been sold to U.S.-based Ecolab Inc. for US$4.75 billion, marking one of the largest technology company exits in Canadian history. The acquisition, purchased from private equity firm KKR and Abu Dhabi’s Mubadala Investment Co., represents 29 times CoolIT’s forecasted adjusted operating earnings for the next 12 months. CoolIT, founded 25 years ago, originally developed liquid cooling solutions for gaming computers but expanded to supercomputers in 2012 and AI systems a decade later. Its cooling solutions are critical for high-performance computing as AI models generate increasing amounts of heat. The company supplies seven of the top 10 supercomputers globally and counts four of the top five server manufacturers and hyperscale tech giants among its clients. Ecolab, with US$16 billion in annual sales, stated that CoolIT will bolster its Global High-Tech business and contribute to long-term growth. The deal is expected to close in Q3 and benefits CoolIT’s 401 employees participating in the OwnIT employee ownership program. Analysts highlight the deal as a reflection of the booming demand for AI infrastructure and data-centre cooling solutions, and it underscores Canada’s growing influence in the global technology sector.