Emerson Electric, a major player in the data center power and cooling arena, is looking to grow its capabilities by buying Avocent and its data center monitoring and management capabilities. Officials for both companies say the combination will enhance what Emerson can do to help businesses lower the energy costs in their data centers.
Emerson Electric officials are looking to expand what they can offer
data center administrators by buying Avocent for $1.2 billion.
Emerson offers products-from power and cooling supplies to racks and
enclosures-designed to help businesses manage their IT infrastructure
and reduce energy costs in their data centers. Buying Avocent will
enable Emerson to enhance its data center management and monitoring
Avocent's technologies will complement those from the Emerson
Network Power business, which includes power management, cooling and
"Combining Avocent's technologies, relationships and installed base
with Emerson's power and cooling presence allows us to offer a more
compelling solution to our data center customers' most pressing
challenge-energy efficiency," David N. Farr, Emerson chairman,
president and CEO, said in a statement. "It furthers our
customers' ability to better manage reliability, availability and
lifecycle costs through a simple yet comprehensive view of the complete
data center physical infrastructure."
The deal, announced Oct. 6, is expected to close by Jan. 1, 2010,
according to both companies. Avocent had about $657 million in sales in
2008. Emerson generated about $2.6 billion in revenues related to data
Data center power and cooling costs
to be key concerns for businesses, which are seeing a growing
percentage of their IT budgets being spent there. The federal
Environmental Protection Agency in 2006 estimated that data centers
accounted for 1.5 percent of all the electricity that is consumed in
the United States. That figure represents about 61 billion
kilowatt-hours of electricity, double the amount consumed by data
centers in 2000.