WESCO International Inc.: Datacenter Services Acquisition, at a Reasonable Price

研报英文原文证据摘录

WESCO International Inc.: Datacenter Services Acquisition, at a Reasonable Price

Equity Research

U.S. Industrial Technology & Distributors

8 June 2026

WESCO International Inc.

Datacenter Services Acquisition, at

a Reasonable Price First Look

Newark Engineering Group acquired for $136M adds higher- WCC OVERWEIGHT

POSITIVEmargin, Datacenter services & cooling capabilities in SE Asia. U.S.& DistributionIndustrial Technology

Price Target USD 376.00

Today after market closed, WCC announced it has entered into a definitive agreement to Price (08-Jun-26) USD 353.23

acquire Singapore-based Newark Engineering Group for ~$136M ($175M Singapore dollars) Potential Upside/Downside +6.4%

Source: Bloomberg, Barclays Research

on a cash-free, debt-free basis, with closing expected in 3Q26 subject to regulatory

approvals. WCC highlights that the acquisition adds to engineered cooling and lifecycle

services, and the Newark website suggests further exposure into semiconductors, U.S. Industrial Technology &

infrastructure, pharmaceuticals, industrial, and commercial. We believe WCC is building an Distributors

aftermarket business for datacenters, as we discussed in our takeaway note following our call Guy Hardwick

with the EVP of WCC's CSS segment. Management also highlighted cross-selling opportunities +1 212 526 2120

guy.hardwick@barclays.cominto hyperscale, enterprise, and colocation customers through WCC’s broader electrical,

BCI, US

communications, and supply chain solution portfolio.

Nick Igneri

WCC stated that Newark margins are accretive to total company, and that the acquisition +1 212 526 1632

multiple is below that of WCC's current multiple, although we are unclear whether the co. is nicholas.igneri@barclays.com

referencing its LTM multiple (15.5x) or 12.8x CYR multiple.