Wesco International, a leading global provider of business-to-business distribution, logistics services, and supply chain solutions, announced that it has entered into a definitive agreement to acquire 100% of Newark Engineering Group (“Newark”). Newark Engineering Group (“Newark”) offers a range of engineering services to provide cooling solutions to critical infrastructures of the data centers.
This acquisition, which will be worth $136 million USD, or 175 million Singapore dollars, will add an extra mile in the data center value chain of Wesco International by providing them with thermal management services and expanding their reach to one of the fastest growing regions, Southeast Asia.
Improving the Thermal Infrastructure Loop for the Data Center
In light of the exponential rise in the use of artificial intelligence, HPC, and cloud computing, which has seen server rack densities achieve record levels, a sophisticated cooling system is essential to avoid overheating. The Newark Data Center is an expert when it comes to designing, supplying, installing, and maintaining such sophisticated cooling infrastructures.
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Newark delivers integrated solutions across the complete data center development loop-from upfront engineering design and baseline equipment layout to active field execution and post-installation energy optimization. The company serves a diverse network of hyperscale, enterprise, and colocation data center providers across critical Southeast Asian digital hubs, including Singapore, Malaysia, and Indonesia.
“Newark provides integrated, turnkey cooling solutions, with strong partnerships and a blue-chip customer base that includes global technology and Fortune 500 companies,” said John Engel, Chairman, President, and Chief Executive Officer of Wesco.
Mr. Engel continued, “This acquisition expands our participation in the data center value chain, particularly in engineered cooling and lifecycle services, and provides a strong growth platform in Southeast Asia. It’s a service-led business with attractive margins, and we see a clear path to above-market growth by leveraging Wesco’s global customer relationships and expanding solutions portfolio. We expect this acquisition to enhance our growth profile, support margin expansion, and generate attractive returns within the first year.”
Commercial Synergies and Accretive Financial Profiles
The combination creates immediate cross-selling and commercial development avenues by aligning Newark’s deep localized technical expertise with Wesco’s expansive global account relationships and supply chain muscle. Wesco intends to increase its total share of wallet by pairing its existing electrical, communications, networking, and structured cabling solutions directly with Newark’s active installed infrastructure base.
Newark generated approximately $60 million USD in revenue in fiscal year 2025. The transaction is immediately EBITDA margin accretive to Wesco’s broader business portfolio and is executed at a purchase multiple positioned below Wesco’s current trading multiple. The acquisition is expected to finalize in the third quarter of 2026, subject to standard regulatory approvals and customary closing conditions.
“Partnering with Wesco will accelerate our growth and expand our ability to serve data center customers across Southeast Asia,” said Fanny Lee, Managing Director of Newark Engineering Group. “Wesco’s global platform and complementary capabilities will allow us to broaden our solutions portfolio, access new customers, and scale the business.”
