Wesco International (NYSE: WCC) says it has agreed to buy privately held Rahi Systems Holdings, Inc. for $217 million. Rahi, headquartered in Fremont, CA, provides a variety of products and services to hyperscale data center operators as a systems and services integrator.
In a letter posted on the Rahi website, CEO Tarun Raisoni said the deal is expected to close in the fourth quarter of this year.
Rahi will become part of Wesco’s Communication and Security Solutions (CSS) strategic business unit. It said the price tag represents approximately 7.5X Rahi’s projected trailing 12 months adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA).
“This acquisition strengthens our leading data center solution offerings for our global customers,” said John Engel, chairman, president, and CEO of Wesco. “Rahi’s extensive services portfolio serving the leading global hyperscale data center providers expands the cross-sell opportunities across our company.”
“Rahi has a successful history of above-market growth since its inception. With more than 900 employees in 25 countries around the world, this acquisition provides complementary global coverage and enhances our full suite of data center solutions for contractors, integrators and end-user customers,” added Bill Geary, executive vice president and general manager, Wesco Communications and Security Solutions.
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