Eaton Corp. ( ETN ) on Monday announced plans to acquire the Boyd Thermal division of Boyd Corporation from Goldman Sachs Asset Management in a $9.5 billion deal to strengthen its data center and aerospace operations.

The move underscores Eaton's ambition to offer an integrated "chip-to-grid" solution for hyperscale and colocation customers as global demand for energy-efficient infrastructure surges.

The agreement, valued at 22.5 times Boyd Thermal's projected 2026 adjusted EBITDA, will expand Eaton's footprint in thermal management and intelligent power systems. Boyd Thermal anticipates $1.7 billion in sales for 2026, with $1.5 billion attributed to its liquid cooling business.

"Combining Boyd Thermal’s engineered liquid cooling expertise with Eaton’s scale will bring new efficiencies to customers managing rapidly growing power needs," said Eaton CEO Paulo Ruiz. The acquisition complements Eaton's existing data center portfolio, enabling customers to better manage the rising power demands driven by AI and digitalization.

Also Read: Vertiv Thrives In AI Era With Strong Backlog, Analyst Says

Based in the U.S. with over 5,000 employees and operations spanning North America, Asia, and Europe, Boyd Thermal has evolved from its aerospace roots into a global provider of thermal management systems.

The transaction is expected to close in the second quarter of 2026. Eaton expects Boyd Thermal to contribute positively to adjusted earnings by the second year after closing. The company continues to align its business with global trends in electrification and digitalization, which are reshaping intelligent power management.

Eaton reported cash and cash equivalents of $398 million as of June 30.

Eaton's strategic direction has attracted positive attention from analysts, with one recently initiating coverage on the company with a bullish outlook. The report highlighting Eaton's leadership in smart power technologies can be read here.

Price Action: ETN shares are trading 1.21% higher at $376.94 premarket as of last check on Monday.

Read Next:

Coeur Mining’s $7 Billion Deal For New Gold Creates $20 Billion Powerhouse