GE Vernova Inc. announced it will acquire the remaining 50% stake in Prolec GE, a joint venture it co-founded with Xignux in 1995. The $5.275 billion deal will be split evenly between cash and debt and is expected to close by mid-2026, pending regulatory approval.

The acquisition will fully consolidate Prolec GE under GE Vernova, significantly expanding its Electrification segment, which is currently its fastest-growing business. Prolec GE, a major supplier of grid equipment such as transformers, has an estimated 2025 revenue projection of $3 billion with approximately 25% adjusted EBITDA margin.

With seven global manufacturing sites, including five in the U.S., Prolec GE is positioned to help meet increasing electricity demand in North America, driven by data center growth and energy transition policies.

Scott Strazik, CEO of GE Vernova, called the move "highly strategic," noting it strengthens GE Vernova's footprint in a critical growth market. Juan Ignacio Garza Herrera, CEO of Xignux, described the decision as one of "full conviction," affirming Xignux's continued investment in its other businesses across North America.

The deal follows over $300 million in recent Prolec GE investments in North America, including a $140 million expansion in North Carolina.

Morgan Stanley and Skadden, Arps, Slate, Meagher & Flom LLP advised GE Vernova, while J.P. Morgan and Sidley Austin LLP advised Xignux.