Calgary-based CoolIT Systems, a specialist in liquid cooling for AI data centres, is set to be acquired by U.S. company Ecolab for $4.75 billion US, in what’s being called one of the city’s biggest tech deals of all time.
As part of the acquisition, the company’s 650 employees will receive substantial cash payouts, ranging from approximately one year of annual pay to over eight years’ worth — a major announcement celebrated by workers on Wednesday.
Jerin Varghese, an engineer at CoolIT since 2021, said the money is “life-changing” for him and his family.
“I do have some plans on exactly what to do. Maybe pay off the mortgage, invest some money and, you know, take care of the family and parents,” he said, adding that a vacation with his wife was in order.
The 25-year-old company, which started in a Calgary garage, was acquired by global investment firm KKR in 2023, making its employees owners in the business. Abu Dhabi-based, state-owned investment company Mubadala also served as a minority co-investor in CoolIT.
That year, spending on data centres that can handle large AI workloads like OpenAI’s ChatGPT skyrocketed, with CoolIT positioned to capitalize on the overwhelming newfound demand of liquid systems needed to cool racks of servers.
Now, CoolIT serves hyperscalers and data centre operators across more than 300 facilities globally, according to Mubadala.
As the Wall Street Journal reported, when the sale closes later this year, CoolIT’s employees are expected to receive average payouts of around $240,000 US each, with the longest-serving employees potentially receiving at least $380,000 US, or eight times as much as their salaries.
Employees will also receive pre-paid personal financial coaching and tax preparation services.
In a release, KKR said the sale will generate approximately 15 times the original equity it invested.
Patrick McGinn, president and COO of CoolIT, said the company’s future looks bright, and he isn’t expecting a slowdown anytime soon.
“We’re really excited to combine CoolIT’s liquid cooling technologies with Ecolabs’ water chemistry services and fluid management to create an operating system for our customers that is more efficient, that’s higher performance and, of course, allows us to help them save water,” he said.
Ecolab expects CoolIT to generate approximately $550 million US in sales over the next 12 months, according to a release.
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