CoolIT Employees Share in $4.75 Billion Transaction as KKR Agrees to Sell to Ecolab
KKR and its investors achieve 15x return
100% of CoolIT employees receive significant payouts
KKR, a leading global investment firm, today announced that it has entered into a definitive agreement to sell CoolIT Systems ("CoolIT" or "the Company"), a global leader in liquid data center cooling, to Ecolab in a transaction valued at $4.75 billion. The sale will represent one of KKR's largest recent realizations, generating approximately 15x the original equity invested, inclusive of distributions. At the close of the transaction, all CoolIT employees will receive a substantial cash payout on their ownership in the Company. Mubadala Investment Company ("Mubadala") also served as a co-investor in CoolIT.
A 25-year pioneer in liquid cooling, CoolIT designs and manufactures advanced systems that enable sustainable data center growth as AI-driven compute demand increases. While cooling can account for up to 50% of total facility energy use in traditional air-cooled data centers, liquid-cooled data centers use ~30-40% less energy for cooling while also reducing water consumption as a closed-loop system. Today, leading hyperscalers and data center operators rely on CoolIT's liquid cooling technologies to improve energy efficiency and support higher-density AI infrastructure across more than 300 data centers globally.
KKR acquired CoolIT in 2023 through its Global Impact Fund II, which helps scale innovative commercial solutions to global challenges. In 2025, CoolIT's solutions delivered an estimated 2.18 billion kWh in energy savings, enough to power approximately 200,000 homes for one year.
"We acted early on the conviction that rapid growth in computing demand would pose a significant challenge for data center efficiency, as traditional air-cooled systems can be incredibly energy- and water-intensive. As a leader in liquid cooling, CoolIT delivers compelling solutions that strengthen this critical infrastructure while reducing resource consumption," said Kyle Matter, Managing Director and Head of North America Global Impact at KKR. "This outcome reflects exactly the type of opportunity we seek in our Global Impact strategy. We are proud of the CoolIT team's accomplishments and believe the business is very well positioned for sustained growth."
At the time of acquisition, CoolIT employees became owners in the business through a broad-based ownership program, aligning the entire organization around long-term value creation. With this sale, CoolIT's 650 employees will receive cash payouts, ranging from approximately one year of annual pay for employees to over eight years of annual pay. Employees will also be eligible to receive pre-paid personal financial coaching and tax preparation services.
With the support of KKR, CoolIT delivered significant operational improvements and growth across the business, driven by a strong ownership mindset, continued product innovation, and expanded relationships with hyperscale customers. Since 2023, the Company has:
- Doubled its workforce, adding more than 300 jobs
- Expanded its manufacturing footprint to more than 300,000 square feet and increased coolant distribution unit (CDU) capacity by 25x
- Positioned the business to deliver projected ~4x revenue growth and ~10x EBITDA growth through 2026
"CoolIT demonstrates the power of a true ownership culture in driving meaningful results for both companies and employees. When employees are owners, they have a direct stake in the company's success and help drive the innovation and execution that fuel long-term growth," said Pete Stavros, Partner and Global Co-Head of Private Equity at KKR. "This result reflects the team's dedication, and every employee gets to share in the upside."
Following the close of the transaction, CoolIT's leadership team, led by CEO Jason Waxman, is expected to remain in place and continue to run the business under the CoolIT name.
"This milestone is the result of the combination of CoolIT's unique expertise and talent, KKR's acumen in investing in high growth opportunities, and Ecolab's track record of acquiring world-class technical capability," said CoolIT CEO Jason Waxman. "I am grateful for KKR's commitment and investment in our unprecedented growth. By combining CoolIT's anchor technology with Ecolab's proven strengths in water, chemistry, digital, and global service, we are creating holistic, end-to-end cooling capabilities. Together, we are positioning CoolIT and Ecolab as the industry's most dynamic company in liquid cooling, one of the most important technologies for AI data centers."
KKR focuses on employee engagement and broad-based equity participation as a key driver in building stronger companies and expanding financial opportunity. Since 2011, 85 KKR portfolio companies have awarded billions of dollars in equity to more than 190,000 non-senior management employees globally. This milestone represents KKR's first broad-based ownership program payout in Canada and the first for its Global Impact strategy in North America.
"Our successful partnership with KKR and the CoolIT management team is a testament to the value that can be created through active management and aligned ownership, and we are proud of what has been achieved together. We are confident that CoolIT will continue to build on this momentum as it enters its next chapter," said Abdulla Mohamed Shadid, Head of Energy and Sustainability, Private Equity at Mubadala.
The transaction, which is subject to customary regulatory approvals, is expected to close in Q3 2026.
Morgan Stanley & Co. LLC and Baird are serving as financial advisors and Kirkland & Ellis is serving as legal advisor to KKR and CoolIT.
About CoolIT Systems
CoolIT Systems specializes in scalable liquid cooling solutions for the world's most demanding high-performance computing environments. Through its broad portfolio of modular direct liquid cooling (DLC) products, CoolIT enables dramatic increases in rack density, component performance and power efficiency across any high-density computing scenario. CoolIT collaborates with the top semiconductor manufacturers and cloud service providers to develop cooling technologies that enable ever greater computing performance and efficiency. Through its Liquid Lab™ R&D centers in Calgary and Taipei, global manufacturing operations in Canada, China, and Vietnam, and on-site support in more than 80 countries, CoolIT serves customers at scale worldwide. Together, CoolIT and its partners are leading the way for widespread adoption of efficient high-density, high-performance computing. For more information about CoolIT Systems, its products and technology, visit http://www.coolitsystems.com
About KKR
KKR is a leading global investment firm that offers alternative asset management as well as capital markets and insurance solutions. KKR aims to generate attractive investment returns by following a patient and disciplined investment approach, employing world-class people and supporting growth in its portfolio companies and communities. KKR sponsors investment funds that invest in private equity, credit and real assets and has strategic partners that manage hedge funds. KKR's insurance subsidiaries offer retirement, life and reinsurance products under the management of Global Atlantic Financial Group. References to KKR's investments may include the activities of its sponsored funds and insurance subsidiaries. For additional information about KKR & Co. Inc. (NYSE:KKR), please visit KKR's website at www.kkr.com. For additional information about Global Atlantic Financial Group, please visit Global Atlantic Financial Group's website at www.globalatlantic.com.
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