Private equity investment firm Advent International has acquired a majority stake in LayerZero Power Systems, a US-based power infrastructure provider serving the data center sector.

LayerZero was founded in 2001 and is headquartered in Aurora, Ohio. The company provides power products for mission-critical data center applications, including static transfer switches and power distribution units.

According to the companies, the acquisition will support LayerZero in scaling its manufacturing capacity to meet the demand from artificial intelligence applications, which require increasingly more power-dense equipment.

“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.

As part of the deal, 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.

Commenting on the deal, Clayton described the data center industry as reaching an “inflection point,” leading to “unprecedented demand for resilient, high-performance infrastructure.”

“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,” she continued.

The transaction is expected to close in the third quarter of 2025. Financial details were not disclosed.