Acuity agrees to buy Parameter for $675 million, adding data-center leak detection

Acuity is buying technology designed to spot leaks before they disrupt data-center operations. On October 26, 2026, it announced a definitive agreement to acquire Parameter Technologies for $675 million. The proposed deal would add leak detection, environmental monitoring and battery monitoring to a portfolio that already includes Distech’s edge controls.

Liquid cooling creates a detection opportunity

Acuity ties the acquisition to data centers adopting more complex liquid-cooling systems. It describes leak detection as a fast-growing market driven by that transition. Parameter’s technology identifies the location of a leak, rather than simply indicating that one exists. Acuity says that capability helps customers find problems earlier, reduce disruption and protect critical equipment.

The target’s business extends beyond cooling-related detection. Through its RLE Technologies and CellWatch brands, Parameter supplies leak detection, environmental monitoring and battery monitoring for data centers, utilities and other critical infrastructure. The company describes these products as tools for facility operators to protect performance and limit costly downtime.

Parameter is headquartered in Fort Collins, Colorado. It also has engineering and service operations in Raleigh, North Carolina, and sales and service capabilities in Milton Keynes, United Kingdom. The proposed purchase therefore brings an operating monitoring business with engineering and customer-service capabilities, alongside its detection technology.

Distech would connect sensing with controls

After closing, Parameter would become part of Distech Controls within Acuity Intelligent Spaces. Acuity’s stated plan is to combine Parameter’s sensing, detection and monitoring technology with Distech’s edge controls. Peter Han, president of Acuity Intelligent Spaces, said the combination would broaden the company’s data-center capabilities and strengthen relationships with channel partners.

The sales routes already overlap. Parameter and Distech both sell through system integrators and distributors, and Acuity expects the acquisition to deepen Distech’s relationships with cooling-equipment manufacturers. That shared distribution is part of the acquisition rationale: the buyer wants to connect the added monitoring products with channels used by its existing controls business.

Parameter CEO Michael Blazes described broader applications as a goal of joining Acuity. He said the companies could bring Parameter’s technology to more uses while helping customers identify issues earlier and act to protect operations. Those are the intended benefits of the combination, rather than results from an already completed integration.

Approximately $100 millionExpected sales

Acuity says Parameter expects approximately $100 million in calendar 2027 sales.

More than 30%Expected annual sales growth

The sales forecast represents growth of more than 30% year over year.

Approximately 40%Expected EBITDA margin

Parameter projects a roughly 40% margin on earnings before interest, taxes, depreciation and amortization.

Borrowing now, closing still ahead

Acuity expects Parameter to improve revenue growth and margins at Acuity Intelligent Spaces. It also forecasts an increase in its fiscal 2027 full-year adjusted diluted earnings per share from the acquisition. These are company projections; the target’s sales outlook uses calendar 2027, while Acuity’s earnings forecast uses its fiscal year.

To pay for the transaction, Acuity anticipates using $500 million in borrowings and covering the remainder with cash on its balance sheet. J.P. Morgan and Bank of America are leading the financing. PJT Partners is Acuity’s financial adviser, and Baker McKenzie is providing external legal counsel.

The next transaction milestone is closing, which Acuity expects in the second quarter of its fiscal 2027. The agreement remains subject to customary closing conditions, including expiration of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act. Parameter’s move into Distech is contingent on completing that purchase.