Mubadala Co-Invests With KKR to Acquire CoolIT

Cleary Gottlieb represented a wholly owned subsidiary of Mubadala Investment Company PJSC (Mubadala), a sovereign wealth fund of the Emirate of Abu Dhabi, in Mubadala’s co-investment alongside funds managed by Kohlberg Kravis Roberts & Co. L.P. (KKR) (in which Mubadala is a limited partner) in the acquisition of CoolIT Systems Inc. (CoolIT), a Canadian company that specializes in scalable liquid cooling solutions for individual servers through to the world’s most demanding data centers and HPC systems.

The transaction is particularly significant as it represents the first of several expected future co-investment opportunities between Mubadala and KKR.

The transaction signed on May 1, 2023, and closed on June 30, 2023.

Under the acquisition agreement, the buyer acquired 100% of CoolIT at a base purchase price of $270 million, subject to adjustments including an additional earnout of up to $35 million. Mubadala directly acquired approximately 24.4% of the equity of the buyer at closing and will acquire an additional 1.7% equity interest from KKR post-closing following receipt of regulatory approval.