Strategic Investment to Accelerate LayerZero’s Expansion in Power Solutions for Data Centers

Advent International, a leading global private equity investor, has signed a definitive agreement to acquire a majority shareholding in LayerZero Power Systems, a U.S.-based manufacturer of static transfer switches (STSs), power distribution units (PDUs), and other critical power management products for data centers and high-demand computing environments.

Following the transaction, LayerZero’s founders, Milind Bhanoo and James Galm, will retain minority equity stakes. Annette Clayton, an Operating Partner at Advent and former CEO of Schneider Electric North America, will be appointed Chair of LayerZero’s Board of Directors, bringing extensive leadership and data center industry expertise.

Positioned for the AI-Powered Future

Founded in 2001, LayerZero delivers highly reliable power infrastructure solutions essential to mission-critical data center operations. As AI and cloud computing continue to expand, the demand for high-performance, power-dense systems powered by GPUs has surged—propelling LayerZero’s rapid growth.

With Advent’s backing, the company plans to scale its manufacturing footprint, expand its customer base, and enhance its service capabilities to meet the rising power demands driven by generative AI and next-gen computing workloads.

“Under Milind and James’ leadership, LayerZero has emerged as a leader in one of the fastest-growing segments of power infrastructure,” said Abhishek Chauhan, Principal at Advent. “With our sector insights and operational expertise, we aim to help the company grow more efficiently and serve the evolving needs of its customers.”

Leadership Commentary

“LayerZero was founded to deliver high-performance power infrastructure for mission-critical environments,” said Milind Bhanoo, Co-Founder and President. “With Advent’s support, we’re ready to scale while preserving our commitment to innovation and reliability.”

“AI workloads are creating unprecedented power density in data centers,” added James Galm, Co-Founder and CTO. “This partnership will help us expand R&D and serve more customers with precision-engineered solutions.”

“LayerZero is enabling the backbone of AI infrastructure,” said Annette Clayton. “With demand for resilient power systems skyrocketing, I’m excited to work alongside the team and Advent to scale this business globally.”

Supporting the Energy Transition

This investment aligns with Advent’s focus on the accelerating demand for digital infrastructure and energy transition. It complements their portfolio, including companies like INNIO, a decentralized power generation leader with a growing data center business, and Volue, a provider of power optimization software and data services.

The transaction is expected to close in Q3 2025, pending regulatory approvals and customary closing conditions.

Advisors:

  • LayerZero: Citizens Capital Markets (investment banker), Calfee, Halter & Griswold LLP (legal advisor)
  • Advent: Harris Williams LLC (financial advisor), Weil, Gotshal & Manges LLP (legal advisor)

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