Wesco International reported late Monday that it has signed a definitive agreement to acquire Newark Engineering Group, a Singapore-headquartered specialist in thermal management for data center facilities, for a cash-free, debt-free purchase price of 175 million Singapore dollars - reported by the company as approximately $136 million. Following the announcement, Wesco shares advanced 2.1% in after-hours trading.
Under the terms disclosed, Wesco will take full ownership of Newark, whose core activities include the design, supply, installation, commissioning and ongoing maintenance of data center thermal management systems. Newark serves customers across Singapore, Malaysia and Indonesia and offers an end-to-end service model spanning initial design through long-term lifecycle support.
Company materials state that Newark produced roughly $60 million of revenue in 2025. Wesco also reported that the acquisition will be EBITDA margin accretive to its existing portfolio and that the purchase multiple for Newark is below Wesco's current trading multiple.
Wesco described the transaction as a strategic expansion of its position in the data center ecosystem, particularly in engineered cooling and lifecycle services. In company comments accompanying the deal, John Engel, Chairman, President and Chief Executive Officer of Wesco, emphasized the acquisition as providing a platform for growth in Southeast Asia and strengthening the company’s capabilities in data center cooling and lifecycle services.
Engel further indicated that Wesco expects the purchase to improve its growth profile, contribute to margin expansion and deliver attractive returns within the first year following closing.
The parties anticipate completing the transaction in the third quarter of 2026, though the closing remains subject to customary regulatory approvals and closing conditions described by Wesco. No additional timing details or regulatory specifics were provided in the announcement.
Market reaction and strategic context
The market reaction to the agreement was immediate in after-hours trading, where shares of Wesco rose 2.1% following the release. The company characterized the deal as complementary to its existing offerings in engineered cooling and as a means to strengthen its presence across Southeast Asia's data center market.
What is known and what remains open
- Purchase price: 175 million Singapore dollars on a cash-free, debt-free basis - approximately $136 million.
- Target performance: Newark had about $60 million in revenue in 2025 and is described as EBITDA margin accretive to Wesco.
- Timing: Expected close in Q3 2026, pending customary regulatory approvals and other closing conditions.
The announcement provides concrete figures for the purchase price and recent revenue, while timing and completion remain contingent on regulatory and closing processes common to such transactions.