Vent Electric disclosed plans to acquire Maverick Power for $1.75 billion, a transaction structured to expand the buyer's presence in power distribution hardware and data center electrical systems. The deal targets a supplier with existing contracts across colocation and cloud infrastructure operators, positioning Vent to serve expanding capacity requirements driven by artificial intelligence compute buildouts.
Maverick Power operates primarily in high-voltage switchgear, uninterruptible power supply assemblies, and modular distribution systems purpose-built for hyperscale facilities. The company holds vendor relationships with three of the five largest U.S. colocation operators and maintains production capacity in Texas and North Carolina. Vent Electric, a mid-tier electrical component manufacturer with $3.2 billion in trailing revenue, has historically served industrial and commercial construction markets but recorded only 12 percent of 2024 revenue from data center customers. The acquisition would lift that exposure above 30 percent on a pro forma basis, according to company filings.
The timing reflects a structural tightness in power infrastructure for new data center developments. Utility interconnection queues in Virginia, Arizona, and Ohio averaged 38 months for new capacity requests filed in 2024, up from 19 months in 2022. Hyperscalers are increasingly signing long-term contracts with equipment suppliers capable of delivering integrated power systems on compressed schedules, creating margin expansion opportunities for vendors who can meet delivery windows. Maverick's backlog stood at $980 million as of the fourth quarter, with 68 percent tied to projects scheduled for energization before mid-2026. That backlog converts directly into Vent's forward revenue, offering visibility most electrical component peers lack.
The transaction carries execution risk tied to Vent's balance sheet. The company plans to fund the deal with $1.1 billion in new term debt and $650 million in equity, raising pro forma net leverage to approximately 4.2 times EBITDA. Covenant flexibility under Vent's existing credit facility is narrow, and the company will need to demonstrate revenue synergies within 18 months to avoid refinancing pressure. Integration of Maverick's supply chain—particularly its reliance on transformers sourced from a single European manufacturer—introduces concentration risk Vent has not previously managed.
Allocators should monitor Vent's supplier diversification progress and customer contract disclosures through the second quarter of 2026. Hyperscaler capital expenditure guidance, particularly from the two cloud providers representing 41 percent of Maverick's backlog, will determine whether the acquisition thesis holds through the current build cycle. Utility rate case filings in key data center markets will signal whether power costs begin pressuring developer returns, potentially slowing new capacity announcements.
The deal closes in the third quarter, subject to regulatory clearance and debt syndication. Vent has not disclosed breakup provisions.