Case-connected unicorn

Milind Bhanoo ’88, MS ’91, and James Galm, ’84, MS ’87, PhD ’91, founded LayerZero Power Systems 24 years ago to serve the slow rise of data centers. Then came the explosive growth of artificial intelligence, or AI.

As demand for data processing surged, the industry embraced the company’s products, which include highly reliable static transfer switches and power distribution units.

LayerZero, based in the Cleveland suburb of Aurora, is being purchased in a deal that values the company at $1 billion, according to news reports. The buyer is Advent International, a private equity firm that announced it will help LayerZero scale up its manufacturing capacity.

“LayerZero was founded with a simple but powerful mission: to deliver highly reliable, high-performance power infrastructure for the most demanding mission-critical environments,” Bhanoo, the company CEO, said in a statement. “As data centers evolve to support the growing needs of AI and highperformance computing, our role has become even more important.”

Galm, the vice president and CTO, predicted more growth.

“Our partnership with Advent gives us the platform to expand our capabilities, accelerate R&D and serve even more customers with the missioncritical solutions they depend upon,” he said in a statement.

Both men earned their degrees in electrical engineering from Case Institute of Technology, where Galm was president of the Case Amateur Radio Club. Bhanoo added an MBA from the Weatherhead School of Management.

The founders are expected to retain a minority stake in the 400-employee company and continue in their executive roles, Crain’s Cleveland Business reported.