HVAC company Daikin has acquired a maker of combined air and liquid-cooled cabinets.

Daikin Applied announced this week that it entered into a definitive agreement to acquire DDC Solutions, a San Diego-based developer of high-density cooling cabinets and management software for data centers.

This deal is expected to close by the end of the month. Terms were not shared.

Launched in 2011, California-based DDC Solutions offers a patented, self-contained hybrid cooling system that integrates air and liquid cooling directly within the data center racks. Daikin said the deal will add in-room, rack-level solutions for white space cooling to its data center portfolio.

“The demand for high-performance data centers is accelerating and the equipment inside those data centers is evolving rapidly”, said Yu Nishiwaki, chief operating officer for Daikin Applied. “This acquisition allows us to deliver a rack-level cooling platform that is resilient, flexible, and scalable, and able to support current and next-generation chip sets.”

DDC’s S-Series v4 cabinet technology reportedly supports up to 100kW air cooling and is liquid-to-chip ready, reportedly able to offer up to 600kW of cooling capacity per rack.

Investment firms Cequel III and Thompson Street Capital Partners took a controlling interest in DDC last year from co-founders Chris Orlando and Mark Ortenzi. After the closing of this deal, DDC Solutions will operate as a subsidiary of Daikin Applied, with the company’s leadership team remaining in their current roles.

“The ability to scale quickly scale across geographies with Daikin’s resources is a game changer”, said Keith Markley, CEO of DDC Solutions. “The global demand for data center solutions is expanding so quickly, and being part of Daikin Applied will allow us to respond to this demand at an even greater level of excellence than before.”

Customers of DDC include Hudson Interxchange, which operates out of the 60 Hudson Carrier hotel in New York City, placing a cluster of DDC S-Series V4 racks in a new hall for customer Cato. TierPoint is also a customer, according to DDC brochures.

Daikin Applied, part of Daikin Industries, designs and manufactures advanced commercial and industrial HVAC systems. It offers air-cooled, water-cooled, or hybrid systems for data center customers.

Lincoln International served as the exclusive financial advisor to DDC Solutions and its shareholders.