Valued at $10 billion, this data center thermal management company is up for sale.

Phononic was founded in 2009 by Tony Atti, a former NASA researcher; Matt Trevithick, a former Venrock partner; and Patrick McCann, a professor at the University of Oklahoma. The company develops thermoelectric coolers applied across diverse cooling-demanding scenarios—including smart mattresses and logistics containers—with international partners such as Thermo Fisher and Futai Technology, and collaborates with Fabrinet to scale up manufacturing across the Asia-Pacific region. Since its founding, Phononic has completed multiple funding rounds, backed by investors including Oaktree Capital, GGV Capital, Qiming Venture Partners, Venrock, and Goldman Sachs. Phononic LinkedIn page Amid the rapid advancement of AI over the past two years, Phononic has shifted its business focus toward data center thermal management. In mid-November last year, the company launched its AI data center cooling solution. Its thermal management technology differs from mainstream liquid-cooling solutions currently deployed in data centers. Conventional liquid cooling requires pumps to deliver coolant to cold plates attached to servers, whereas Phononic’s thermal management modules—centered on thermoelectric coolers (TECs)—can be directly mounted onto high-bandwidth memory chips and graphics processing units to cool chip clusters, and are compatible with air- and water-cooling systems. In 2022, Phononic’s prior valuation stood at just $600 million; its current valuation has more than doubled, exemplifying the explosive valuation growth experienced by industrial tech firms amid the AI boom. Terms of the potential transaction remain under negotiation, and Phononic may abandon the sale plan altogether in favor of raising additional capital. Over the past two years, AI companies’ demand for data centers has been enormous. The rapid development of the AI industry has triggered a wave of data center construction.

Profit of ¥30 billion in three years—KKR is exiting again.

Originally published by 'China Private Equity Investment' (ID: PE-China) Author: Wei Yajun Photography: Bob KKR (including co-investors) achieved a paper return of over 17x in three years. A textbook-perfect exit. Recently, Ecolab Inc., a global leader in water treatment and sustainable development solutions, announced it will acquire CoolIT Systems—a developer of data center liquid-cooling systems—for approximately $4.75 billion in cash (roughly RMB 32.8 billion). CoolIT Systems is currently majority-owned by funds managed by KKR. In May 2023, KKR (together with co-investors) acquired a majority stake in CoolIT Systems for approximately $270 million. The transaction is expected to close in Q3 2026. An expensive acquisition Valuation far exceeding traditional industrial sectors Judging from the deal terms, this acquisition’s valuation is notably 'expensive.' According to available information, the $4.75 billion purchase price represents 29x CoolIT’s projected adjusted EBITDA for the next 12 months—and 24x its projected adjusted EBITDA for fiscal year 2027. This valuation multiple significantly exceeds those typical of mergers and acquisitions in traditional industrial sectors. Clearly, the elevated valuation directly reflects the extraordinary fervor surrounding the AI infrastructure sector: as global tech giants race to build data centers in pursuit of computing power, thermal management technology has become a critical physical bottleneck constraining AI development. Per Ecolab’s disclosures, CoolIT is expected to generate approximately $550 million in sales over the next 12 months, with an adjusted EBITDA margin of roughly 30%. This implies Ecolab is paying over 8.6x revenue for a company generating about $550 million annually. For comparison, Ecolab’s own market capitalization stands at approximately $77.7 billion, with projected 2025 revenue of $16.08 billion—yielding a price-to-sales ratio of only about 4.8x. Upon completion of the acquisition, Ecolab’s total addressable market (TAM) will double—from $5 billion to $10 billion—with the market growing at double-digit annual rates. Ecolab expects the acquisition to lift organic sales growth for its global water business by two percentage points in the first year post-closing, and boost overall organic sales growth by one percentage point. Starting in 2028 (excluding non-cash amortization expenses), the deal is projected to increase adjusted earnings per share. To finance the acquisition, Ecolab will raise new debt specifically tied to the transaction. From gaming enthusiast to liquid-cooling leader Public records indicate CoolIT Systems was founded in 2001 and is headquartered in Calgary, Canada. Founders Brydon Gierl, Sandy Scott, and Jason Myers conceived the idea of revolutionizing computer cooling amid Calgary’s vibrant startup ecosystem. According to the company’s historical account, Sandy—a gaming enthusiast—was frustrated by overheating graphics cards that severely degraded his PC gaming experience. He approached Brydon for help, and the two began early experiments on their kitchen table to solve this pain point affecting high-performance computing users.

Ecolab (ECL) Among BofA’s List of Companies Set to Benefit from AI Data Center Buildout

May 13, 2026

Bank of America Securities maintains a Buy rating on Ecolab, citing benefits from AI data center liquid cooling demand. The company reported strong Q1 2026 revenue exceeding estimates, driven by growth in its high-tech and cooling segments.

Yahoo! Finance Canada

Ecolab (ECL) Among BofA’s List of Companies Set to Benefit from AI Data Center Buildout

Yahoo Finance

2026-03-20

Ecolab to Acquire AI Data Center Cooling Company for $4.75 Billion

2026-03-21

Ecolab to acquire AI data center cooling company for $4.75B

2026-04-11

Ecolab Is Paying Up To Enter The AI Data-Center Cooling Market

2026-04-16

Ecolab Makes Big Push into AI Data Center Market with $4.75B Acquisition