Summary: KKR is working with advisers on a potential sale of CoolIT Systems, a specialist in data centre cooling technology. People familiar with the situation say the New York-based private equity firm hopes the company could fetch in excess of $3 billion, a substantial increase from the roughly $270 million valuation when KKR acquired a majority stake in 2023. Mubadala Investment Company remains a minority shareholder. Sources indicate the process is at an early stage and may not yield a transaction, though several strategic buyers have been identified as possible bidders.
KKR's consideration of a sale centers on CoolIT Systems, a firm founded in 2001 that originally produced liquid cooling solutions for gaming computers. Over time the company reoriented its product focus toward liquid cooling technologies used in high-performance data centres designed to support intensive workloads, including artificial intelligence applications.
People close to the matter describe the potential deal as multibillion-dollar in scale and say KKR sees the opportunity to realize a return that could be roughly ten times its recent investment. That prospective valuation - more than $3 billion - represents a marked step up from the approximate $270 million valuation tied to KKR's majority purchase in 2023. Mubadala Investment Company is reported to maintain a minority position in CoolIT.
Advisers have been engaged to guide the process, which sources characterize as early stage. Because the sale is exploratory, participants caution it may not lead to an agreement. Nevertheless, the dossier of potential suitors includes several strategic buyers who have been identified as possible bidders.
From a commercial and operational standpoint, CoolIT's transition from consumer-focused liquid cooling to data centre-grade solutions for AI workloads is a central element of its appeal, according to the information provided. That shift underpins the higher valuation being sought and frames why strategic buyers operating in data centre infrastructure, hyperscale computing, or AI-supporting hardware might view the business as complementary to their existing offerings.
The situation retains significant uncertainty. With the process in its early stages, no definitive timetable, price, or buyer has been disclosed. KKR's engagement with advisers signals intent to test the market, but sources underscore that the exploration of options does not equate to a concluded transaction.
Key details:
- KKR is exploring a sale of CoolIT Systems and has engaged advisers to run the process.
- The firm hopes CoolIT could command more than $3 billion, up from an approximate $270 million valuation at the time of KKR's 2023 majority acquisition.
- CoolIT evolved from producing liquid cooling for gaming computers to supplying technologies for high-performance data centres that support AI workloads; Mubadala holds a minority stake.