GESSEL advises DCX and its founders on LITEON’s USD 176 million strategic investment

GESSEL advised DCX Polska sp. z o.o. (“DCX Liquid Cooling Systems”), a manufacturer of advanced liquid cooling systems for data centres supporting artificial intelligence and high-performance computing, and its founders on a strategic investment by LITEON Technology Corporation, a Taiwanese technology group listed on the Taiwan Stock Exchange. The transaction is valued at approximately USD 176 million, equivalent to approximately PLN 655 million.

Upon completion of the transaction, LITEON will hold an approximately 25% equity interest in DCX Liquid Cooling Systems, implying a post-money valuation of approximately PLN 2.6 billion. The investment will bring together DCX Liquid Cooling Systems’ capabilities in liquid cooling technology and LITEON’s expertise in AI server power management and data centre infrastructure design. The companies will jointly develop integrated power and cooling platforms and collaborate on product development, engineering innovation, manufacturing scale-up and global sales.

Founded in 2019, DCX Liquid Cooling Systems supplies liquid cooling systems for data centres supporting AI and high-performance computing. The company serves customers in 75 countries, and its solutions have been deployed by three of the world’s ten largest AI data centre operators. The investment will support DCX Liquid Cooling Systems’ continued international expansion and the construction of a new manufacturing facility where equipment for AI and data centre infrastructure will be developed and manufactured.

The transaction comes amid increasing investment activity and ongoing consolidation in the liquid cooling technology sector. This trend is being driven by the rapid growth of AI applications and the resulting demand for increasingly efficient thermal management systems for high-density data centres.

“LITEON’s investment represents an important milestone in DCX’s global growth and highlights the growing role of Polish technology in the global AI infrastructure value chain. We are delighted to have advised DCX Liquid Cooling Systems and its founders on this strategic transaction with a global technology group,” said Karol Sokół, Partner at GESSEL.

GESSEL acted as lead legal counsel to DCX Liquid Cooling Systems and its founders in connection with the transaction. The firm’s advice included, in particular, structuring the investment, supporting the due diligence process, and preparing and negotiating the transaction documentation, including the investment agreement and shareholders’ agreement.