Fort Collins, Business
Acuity agrees to buy Fort Collins-based Parameter Technologies for $675 million
Acuity expects the deal to close in the second quarter of fiscal 2027, pending customary conditions and antitrust review. The company plans to fund it with borrowings and cash on hand.
Acuity Inc. announced Oct. 26 that it had reached a definitive agreement to acquire Fort Collins-based Parameter Technologies for $675 million.
Parameter is headquartered in Fort Collins, Colorado, with engineering and service operations in Raleigh, North Carolina, and sales and service capabilities in Milton Keynes, United Kingdom. Through its RLE Technologies and CellWatch brands, Parameter provides leak-detection, environmental-monitoring and battery-monitoring solutions for data centers, utilities and other critical infrastructure. Upon closing, Parameter will become part of Distech Controls within Acuity Intelligent Spaces. “By combining Parameter’s sensing, detection and monitoring technology with Distech’s edge controls, we expand our capabilities in data centers and deepen relationships with channel partners,” said Peter Han, president of Acuity Intelligent Spaces.
The transaction is expected to close in the second quarter of fiscal 2027, subject to customary closing conditions. Those include expiration of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended. Acuity anticipates financing the deal with $500 million in borrowings and the remainder from cash on its balance sheet.
Parameter expects calendar 2027 sales of approximately $100 million, growth of more than 30% year over year and EBITDA margins of approximately 40%, Acuity said. Acuity expects the acquisition to increase its adjusted diluted earnings per share for fiscal 2027 as a whole and contribute to revenue growth and margins at Acuity Intelligent Spaces.
Parameter’s leak-detection technology can help customers identify problems earlier, limit disruption and protect equipment as data centers adopt more complex liquid-cooling systems, Acuity said. Its monitoring solutions can help operators maintain performance and avoid costly downtime, Acuity said. Parameter shares Distech’s sales channels, including system integrators and distributors, and the combination will strengthen Distech’s relationships with cooling-equipment manufacturers, Acuity said.