Thompson Street Capital Partners Announces the Sale of DDC Solutions to Daikin

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ST. LOUIS--(BUSINESS WIRE)--Aug 19, 2025--

Thompson Street Capital Partners (TSCP), a private equity firm based in St. Louis, MO, announced today that the firm, along with Cequel III, has completed the sale of DDC Solutions, a leading data center technology provider of high-density GPU cooling solutions and software, to Daikin Applied, a subsidiary of Daikin Industries, the world’s largest manufacturer of HVAC equipment headquartered in Japan. Terms of the transaction were not disclosed.

“In partnering with DDC, we saw a compelling opportunity to help shape a leading platform in the fast-growing AI infrastructure market,” said Jim Cooper, Founder and Chairman of TSCP. “The company’s impressive growth and technological advancement are a testament to its exceptional leadership team. With Daikin’s global reach and commitment to innovation, DDC is well-positioned to continue delivering mission-critical GPU cooling solutions to customers around the world.”

“DDC’s progress over the past 18 months has been remarkable,” said Tom St. Geme, Director at TSCP. “In a short period of time, the company has delivered GPU cooling at scale for top-tier AI customers, launched innovative new products, expanded capacity, and built a high-performing commercial team. Daikin is an outstanding strategic partner to support DDC’s next phase of growth, and we’re excited for what lies ahead.”

Daikin’s acquisition supports its strategy to expand smart and sustainable cooling solutions further into the fast-growing data center sector. DDC will continue to operate as an independent subsidiary from its headquarters in San Diego, California, while gaining access to Daikin’s global resources, R&D capabilities, and commercial footprint.

Lincoln International served as the exclusive financial advisor to TSCP and Cequel III, and Seyfarth Shaw provided legal counsel in connection with the transaction.

About Thompson Street Capital Partners

Thompson Street Capital Partners ( tscp.com ) is a middle-market private equity firm that helps transform already exceptional businesses into market leaders. Based in St. Louis, Missouri, TSCP invests globally in the life sciences and healthcare, software and technology, business and consumer services and products sectors. TSCP partners with management teams to increase value by accelerating growth, both organically and via complementary acquisitions.

About Cequel III

Cequel III ( cequel3.com ) is a private investment firm based in St. Louis, Missouri. The team has a well-established track record of over $40 billion in successful transactions, having helped build several, industry-leading companies through operational excellence and a focus on superior customer service. With a diverse and successful history as an investor operator, Cequel III today has established a strong reputation as a reliable, knowledgeable investment partner for the management teams of lower-mid-market, growth-oriented companies in a number of sectors, including real estate, healthcare, technology, and business services.

About DDC Solutions

DDC Solutions is a global leader in the design and manufacturing of innovative data center cabinet and cooling solutions. Among other uses, patented DDC solutions provide superior, cost-effective cooling options for the high-density GPU clusters that are required to run artificial intelligence (AI) and other compute-intensive applications. DDC products combine the efficiency of water cooling with the flexibility of traditional air cooling. This hybrid approach is optimized with a proprietary software offering, allowing companies to rack IT servers and related equipment as they have traditionally done, while scaling up to significantly higher power densities without the need for direct liquid cooling.

About Daikin Applied

Daikin Applied, a member of Daikin Industries, Ltd., designs and manufactures advanced commercial and industrial HVAC systems for customers around the world. The company’s technology and services play a vital role in creating comfortable, efficient and sustainable spaces to work and live — and in delivering quality air to workers, tenants and building owners. Daikin Applied solutions are sold through a global network of dedicated sales, service and parts offices. For more information or to locate a Daikin Applied representative, visit daikinapplied.com or call 800-432-1342. Also, follow the company on LinkedIn for the latest on HVAC technology, services and trends.

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KEYWORD: MISSOURI UNITED STATES NORTH AMERICA

INDUSTRY KEYWORD: SOFTWARE FINANCE ASSET MANAGEMENT ARTIFICIAL INTELLIGENCE DATA MANAGEMENT PROFESSIONAL SERVICES TECHNOLOGY OTHER TECHNOLOGY

SOURCE: Thompson Street Capital Partners

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PUB: 08/19/2025 06:30 AM/DISC: 08/19/2025 06:30 AM

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