Cequel III and Thompson Street Capital Partners have sold DDC Solutions to Daikin Applied

DDC Solutions

Dynamic Data Centers Solutions, Inc. (DDC Solutions) is a global leader in the design and manufacturing of innovative data center cooling solutions. The company’s patented solutions provide superior, cost-effective cooling options for the high-density GPU clusters that are required to run artificial intelligence and other compute-intensive applications. DDC Solutions’ products combine the efficiency of water cooling with the flexibility of traditional air cooling. This hybrid approach is optimized with a proprietary software offering, enabling hyperscalers, colocation providers and other data center companies to rack IT servers and related equipment as they have traditionally done, while scaling up to significantly higher power densities with liquid cooling.

The Deal

Cequel III and Thompson Street Capital Partners (TSCP) have sold DDC Solutions to Daikin Applied. In partnership with Cequel III and TSCP, DDC Solutions has established itself as a leader in high-efficiency thermal management and cooling solutions for the rapidly evolving data center market, particularly as demand for artificial intelligence-driven workloads continues to accelerate. The company’s differentiated hybrid cooling platform is well-positioned to benefit from long-term secular trends in compute density and sustainability.

The acquisition of DDC Solutions supports Daikin’s strategy to further expand smart and sustainable cooling solutions into the fast-growing data center sector. DDC Solutions will continue to operate as an independent subsidiary from its headquarters in San Diego, California, while gaining access to Daikin’s global resources, research and development capabilities and commercial footprint.

Lincoln International was engaged as the exclusive financial advisor to Cequel III, TSCP and DDC Solutions, leveraging its deep expertise in data center infrastructure, thermal management and broader industrial technology to drive a competitive process and deliver a successful outcome. Terms of the transaction were not disclosed.

Our Perspective

Brian Goodwin, Lincoln International Managing Director who led the transaction, commented, “The data center market continues to see strong investor interest from both strategic and private equity acquirers. DDC Solutions is an innovative platform well-positioned to capitalize on rising compute density and the need for energy-efficient cooling. We’re proud to have advised Cequel III and TSCP on this milestone transaction and are excited to watch DDC Solutions’ continued success as part of Daikin Applied.”

Cequel III

Cequel III is a private investment firm based in St. Louis, Missouri. The team has a well-established track record of over $40 billion in successful transactions, having helped build several industry-leading companies through operational excellence and a focus on superior customer service. With a diverse and successful history as an investor operator, Cequel III today has established a strong reputation as a reliable, knowledgeable investment partner for the management teams of lower-middle market, growth-oriented companies in a number of sectors, including real estate, healthcare, technology and business services. For more information, please visit www.cequel3.com.

Thompson Street Capital Partners

Thompson Street Capital Partners is a middle market private equity firm that helps transform already exceptional businesses into market leaders. Based in St. Louis, Missouri, TSCP invests globally in the life sciences and healthcare, software and technology, business and consumer services and products sectors. TSCP partners with management teams to increase value by accelerating growth, both organically and via complementary acquisitions. For more information, please visit www.tscp.com.

Daikin Applied Americas

Daikin Applied, a member of Daikin Industries, Ltd., designs and manufactures advanced commercial and industrial HVAC systems for customers around the world. The company’s technology and services play a vital role in creating comfortable, efficient and sustainable spaces to work and live—and in delivering quality air to workers, tenants and building owners. Daikin Applied solutions are sold through a global network of dedicated sales, service and parts offices. For more information, please visit www.daikinapplied.com.

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