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.

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20250630015963/en/

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.

About Advent International

Advent is a leading global private equity investor committed to working in partnership with management teams, entrepreneurs, and founders to help transform businesses. With 16 offices across five continents, we oversee more than USD $91 billion in assets under management* and have made 430 investments across 44 countries.

Since our founding in 1984, we have developed specialist market expertise across our five core sectors: business & financial services, consumer, healthcare, industrial, and technology. This approach is bolstered by our deep sub-sector knowledge, which informs every aspect of our investment strategy, from sourcing opportunities to working in partnership with management to execute value creation plans. We bring hands-on operational expertise to enhance and accelerate businesses.

As one of the largest privately-owned partnerships, our 660+ colleagues leverage the full ecosystem of Advent’s global resources, including our Portfolio Support Group, insights provided by industry expert Operating Partners and Operations Advisors, as well as bespoke tools to support and guide our portfolio companies as they seek to achieve their strategic goals.

To learn more, visit our website or connect with us on LinkedIn.

*Assets under management (AUM) as of December 31, 2024. AUM includes assets attributable to Advent advisory clients as well as employee and third-party co-investment vehicles.

About LayerZero Power Systems, Inc.

LayerZero Power Systems is a manufacturer of top-tier solid state power conversion and power distribution products to mission-critical industries. With over 350 associates at three USA based facilities, LayerZero provides “Best on the Planet” technology, quality, and customer experience to its customer base of industry leaders.

LayerZero’s first and flagship product, the Static Transfer Switch (STS) is the acknowledged pre-eminent STS available. Our STS is the most reliable solid state power switch in existence. Leveraging core competencies in electronics, software, mechanical and thermal engineering, the LayerZero product portfolio includes power distribution units, remote power panels, microgrid switches, power and thermal monitoring products.

Founded by two Case Western Reserve University entrepreneurs at the turn of the 21^st century, LayerZero has developed strong relationships with the leaders in AI, cloud computing, colocation, financial services and semiconductor fabrication. We provide our customers with levels of reliability, service, problem solving, and customer satisfaction that exceed expectations and forge long-term relationships.

To learn more about LayerZero Power Systems, visit our website or connect with us at LinkedIn.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250630015963/en/