WESCO International WCC, a multinational electrical distribution and services company, will acquire Fremont, California-based Rahi Systems Holdings, for $217 million.
Rahi Systems Holdings, a data center solution provider, will join WESCO’s strategic business unit for communication and security solutions after the acquisition, WESCO will then increase the range of data-center solutions it provides.
This will support WCC’s growth among end-user clients, integrators, and contractors. In turn, this will support its top-line growth going forward. Evidently, this will help WESCO gain the trust of investors over the short term and long term as well.
Moreover, with the acquisition of Rahi Systems Holdings, WESCO anticipates growing its market share in the rapidly developing hyperscale data center sector. The underlined market has seen tremendous increase recently as a result of the coronavirus-induced rise in cloud services and on-premises migration to colocation facilities.
“This acquisition strengthens our leading data center solution offerings for our global customers… Rahi’s extensive services portfolio serving the leading global hyperscale data center providers expand the cross-sell opportunities across our company.” said John Engel, Chairman, President and CEO of Wesco.
Furthermore, the goal of WCC is to strengthen its Communication and Security Solutions business area, which has become essential, on the strength of Rahi Systems Holdings’ data-center solutions.
The unit is continually driven by the excellent performance of network infrastructure businesses. This is due to the growth in return-to-work activities, global hyper-scale data centers, and a spike in structured cabling.
Additionally, demand for security solutions is rising as a result of expanding adoption of cloud-based technologies and increased IP-based surveillance demand, which is positively influencing the unit’s growth.
Professional Audio-Video projects and in-building wireless applications continue to be in high demand from international clients. Hence, revenues from the business unit totaled $1.6 billion, or 31.8% of all revenues for the second quarter of 2022. Additionally, revenue growth from the same period last year was 9.6%.
