Investment positions LayerZero Power Systems to scale its operations and capitalize on accelerating demand for AI and cloud computing
Advent International (“Advent”), a leading global private equity investor, today announced it has signed a definitive agreement to acquire majority shareholding in LayerZero Power Systems (“LayerZero” or the “Company”), a leading U.S. manufacturer of static transfer switches (STSs), power distribution units (PDUs), and other power management products for data centers and other mission-critical applications. Upon closing, LayerZero’s founders, Milind Bhanoo and James Galm, will remain minority equity holders in the Company, and Annette Clayton, an Operating Partner at Advent and former CEO of Schneider Electric North America, will serve as Chair of LayerZero, bringing deep operational and data center expertise to the Company’s Board of Directors. Financial terms of the transaction were not disclosed.
Founded in 2001 by industry pioneers Bhanoo and Galm, LayerZero provides differentiated, highly reliable power products essential for mission-critical data center applications. Increased cloud penetration and generative AI are driving significant demand for LayerZero’s products. AI applications require high-performance computing enabled by increased usage of graphics processing units (GPUs) and more power-dense equipment. This surging demand and focus on power-dense equipment has propelled LayerZero to grow rapidly. Following the close of the transaction, Advent will partner with the founders and management team to scale manufacturing capacity, expand LayerZero’s customer base, and grow service capabilities.
“Under Milind and James’ leadership, LayerZero has emerged as a leader in one of the most attractive and fastest-growing segments of critical power infrastructure,” said Abhishek Chauhan, Principal at Advent. “Leveraging Advent’s deep sector insights, operational resources, and global reach, we see significant opportunities to expand the Company’s manufacturing footprint, optimize operations through lean practices, and strengthen customer relationships. We are also pleased to welcome Annette Clayton, a top industry leader within the digital infrastructure space, to lead the Board and partner with the management team to drive LayerZero’s next chapter of growth.”
Milind Bhanoo, Co-Founder and President of LayerZero, said, “LayerZero was founded with a simple but powerful mission: to deliver highly reliable, high-performance power infrastructure for the most demanding mission-critical environments. As data centers evolve to support the growing needs of AI and high-performance computing, our role has become even more important. We’re thrilled to partner with Advent, whose deep experience and resources will help us scale our operations while maintaining the hallmark quality and innovation our customers depend on.”
James Galm, Co-Founder and Chief Technology Officer at LayerZero, added, “As AI and GPU-powered workloads drive unprecedented levels of power density and complexity in data centers, the need for reliability, precision, and innovation is paramount. Our partnership with Advent gives us the platform to expand our capabilities, accelerate R&D, and serve even more customers with the mission-critical solutions they depend upon.”
“The data center industry is at an inflection point, with an unprecedented demand for resilient, high-performance infrastructure. LayerZero is at the forefront of enabling this critical support,” said Annette Clayton. “As AI drives our increasing reliance on data center applications, LayerZero has gained significant market share. We see a lot of potential to scale the Company’s products. I look forward to working alongside Advent, the Board, and the LayerZero leadership team to capitalize on the exciting opportunity created by this demand and the Company’s high-caliber products and services.”
This investment underscores Advent’s conviction in the growing demand for cloud computing and AI, which are fueling expansion in the global data center market. Advent’s investment in LayerZero builds upon its portfolio of companies that are driving progress within the energy transition sector, including INNIO, a leading provider of gas engines for decentralized power generation with a substantial and fast-growing data center business, and Volue, a software and data provider focused on optimizing power production and distribution.
The transaction is expected to close in the third quarter of 2025, subject to customary regulatory approvals and closing conditions.
Citizens Capital Markets and Advisory is serving as LayerZero’s investment banker and financial advisor, and Calfee, Halter & Griswold LLP is serving as legal advisor to LayerZero. Harris Williams LLC is serving as financial advisor and Weil, Gotshal & Manges LLP is serving as legal advisor to Advent.
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