The demand for AI data centers and electrical infrastructure is heating up, leading Prysmian to invest $3.8 billion to acquire Atkore (ATKR.US).

Italian cable giant Prysmian SpA announced on Monday that it has reached a cash acquisition agreement to acquire U.S. electrical manufacturing company Atkore Inc. (ATKR.US). Under the agreement, Prysmian will purchase Atkore, headquartered in Harvey, Illinois, for $95 per share, corresponding to an enterprise value of approximately $3.8 billion. This offer represents a premium of about 30% over Atkore's closing price on July 31 and confirms previous reports that the deal was imminent. Atkore's stock surged nearly 30% in pre-market trading. Atkore primarily produces a variety of products and systems for electrical wiring and protection. This acquisition is the latest step in Prysmian's expansion strategy in the U.S. market, based in Milan. In recent years, the company has been continuously ramping up its U.S. operations through a series of acquisitionstwo years ago, Prysmian acquired Encore Wire for nearly 4 billion (approximately $4.6 billion), setting a record for the largest deal in the company's history; about a year later, it acquired Channell Commercial Corp. for approximately 1 billion. Prysmian CEO Massimo Battaini stated in an interview in May that the company has been searching for potential acquisition targets with an enterprise value of around 4 billion. He also revealed that Prysmian plans to achieve a dual listing in the U.S., calling it a "top priority," although no specific timeline was provided. Atkore announced last November that it had engaged Citigroup and JPMorgan to assist in evaluating strategic options, including a potential sale. This strategic assessment was initiated under pressure from activist investment firm Irenic Capital Management.