Eaton (NYSE:ETN) has announced it has signed an agreement to acquire Tripp Lite, a supplier of power quality products and connectivity solutions in its latest drive to answer the growing demand for edge computing infrastructure.
Under the terms of the agreement, Eaton will pay US$1.65 billion for Tripp Lite, which represents approximately 12 times Tripp Lite’s 2020 EBITDA and 11 times estimated 2021 EBITDA.
Founded nearly 100 years ago, the company is headquartered in Chicago, Illinois, and manufactures single-phase uninterruptible power supply systems, rack power distribution units, surge protectors, and enclosures for data centres, industrial, medical, and communications markets in the Americas.
Uday Yadav, president and chief operating officer, Electrical Sector, Eaton, said: “The acquisition of Tripp Lite will enhance the breadth of our edge computing and distributed IT product portfolio and expand our single-phase UPS business. We look forward to welcoming Tripp Lite to the Eaton family.”
In its latest financial report in 2010, Eaton’s revenues were $21.4 billion. The company has customers in more than 175 countries and approximately 92,000 employees.