Calgary-based CoolIT Systems, a maker of scalable direct liquid cooling technology, said it has closed an “eight figure” growth investment. The investors are BDC Capital and strategic partner nVent. The company has previously secured funding from Chart Venture Partners, Inovia Capital, Vistara Capital Partners and others.
Calgary, Alberta. March 4, 2020 – CoolIT Systems, maker of scalable direct liquid cooling technology (DLC), has announced the completion of an undisclosed eight figure investment led by BDC Capital (BDCC), the investment arm of BDC, the Bank for Canadian Entrepreneurs, and nVent, a strategic partner and leader in the data center connection and protection space. This news is accompanied by a commercial agreement between CoolIT and nVent which will enable both companies to provide customers with fully integrated advanced cooling technologies for high performance data center environments.
“CoolIT’s technology complements nVent’s liquid cooling product offering, and provides customers with solutions from outside the rack all the way to the chip,” said Joe Ruzynski, president of Enclosures for nVent. “This alliance marks a new chapter in our data center cooling evolution, and presents compelling growth opportunities for both companies.”
CoolIT is an industry leader in Data Center Direct Liquid Cooling and has experienced organic five-year CAGR of 51%. In 2020, the company ended the year with a record $94 million in revenue and a record level of open orders across both the Data Center and Desktop segments.
“According to Masanet et al., the quantity of data traversing the internet has increased more than ten-fold between 2010 and 2018, while global data center storage capacity increased by a factor of 25 in parallel”, says Cheri Corbett, Director, Cleantech Practice at BDCC. “Everything ranging from automobiles to home appliances is now connected and collecting more data, confirming the need for highly efficient data center cooling solutions. Cool IT’s strong growth is a shining example of the outcomes we seek to enable by providing growth capital to eco-friendly leaders and their innovations”.
With this new investment, CoolIT will continue to focus heavily on technology development, manufacturing facilities and best-in-class testing infrastructure. The company says it will also expand its investment in new and emerging technologies both through internal development programs and through acquisition.
“While we continue to reinvest in technology and a world class team, we are also working diligently on reducing costs and creating a faster path to market for our customers.” says Steve Walton, CoolIT’s Chief Executive Officer. “Sustaining our current growth rate is our top priority and these funds will allow us to grow faster and further than ever.”
CoolIT continues to increase its technological capabilities and customer experience through the launch of several Innovation Labs this year. CoolIT is currently breaking ground on a 15,000 sq.ft. state-of-the-art Innovation Lab at its headquarters in Calgary, Alberta, Canada which is slated for opening in May of this year. This lab greatly enhances CoolIT’s prototype and pre-manufacturing capabilities while also providing customers with an opportunity to see multiple CoolIT products in operation. This facility will be followed by the launch of a second Innovation Lab and office in Taiwan in Q2 and a third Innovation Lab in the US by end of year.
About CoolIT Systems
CoolIT Systems specializes in scalable liquid cooling solutions for the world’s most demanding high-performance computing environments. In the desktop enthusiast market, CoolIT provides unparalleled performance for a range of gaming systems utilizing its patented split flow technologies. Through its modular, Direct Liquid Cooling technology, Rack DLC™, CoolIT enables dramatic increases in rack densities, component performance and power efficiencies. CoolIT partners with the global IT OEM leaders and Cloud Service Providers to provide the most efficient and reliable liquid cooling solutions. Together, CoolIT and its partners are leading the way for widespread adoption of efficient high-density and high-performance computing. For more information about CoolIT Systems and its technology, visit www.coolitsystems.com.
nVent is a leading global provider of electrical connection and protection solutions. We believe our inventive electrical solutions enable safer systems and ensure a more secure world. We design, manufacture, market, install and service high performance products and solutions that connect and protect some of the world’s most sensitive equipment, buildings and critical processes. We offer a comprehensive range of enclosures, electrical connections and fastening and thermal management solutions across industry-leading brands that are recognized globally for quality, reliability and innovation. Our principal office is in London and our management office in the United States is in Minneapolis. Our robust portfolio of leading electrical product brands dates back more than 100 years and includes nVent CADDY, ERICO, HOFFMAN, RAYCHEM, SCHROFF and TRACER. Learn more at www.nvent.com.
About BDC Capital
BDC Capital is the investment arm of BDC, the bank for Canadian entrepreneurs. With over $3 billion under management, BDC Capital serves as a strategic partner to the country’s most innovative firms. It offers businesses a full spectrum of capital, from seed investments to growth equity, supporting Canadian entrepreneurs who have the ambition to stand out on the world stage. Visit bdc.ca/capital.