Dive Brief:
- Trane Technologies on Wednesday announced that it has signed a definitive agreement to acquire BrainBox AI, a fast-growing provider of autonomous HVAC controls and generative AI building technologies.
- BrainBox AI’s enterprise autonomous building platform uses advanced deep learning algorithms to predict building energy needs, automate HVAC systems, and reduce energy consumption and greenhouse gas emissions. Its technology is deployed across over 14,000 commercial buildings globally, including airports, office buildings, hotels, complexes and commercial retail, according to the announcement.
- The acquisition is expected to bolster Trane Technologies’ advanced building management and digital capabilities, it said. Through BrainBox AI’s platform, users can cut energy consumption by up to 25% and GHG emissions up to 40%, the companies said in a news release.
Dive Insight:
The acquisition, described by Trane Technologies as a “bolt-on” deal, follows its model of adding leading technologies to augment its core business. It noted that the transaction is expected to close in early 2025.
In the third quarter of 2024, Trane Technologies’ commercial HVAC revenue in the Americas grew nearly 20% year over year, with bookings in the region growing 8%, driven by strong demand for applied solutions. “In particular, we expect strong performance in our commercial HVAC businesses with our large and growing installed base,” Trane Technologies CEO David Regnery said on an earnings call in October. “With increased focus on decarbonization, we’re seeing increased demand for digital performance optimization and demand side management, where our energy services business shines,” Regnery said.
Regnery emphasized that the company expects strong demand for its solutions in its Americas commercial HVAC segment, as it makes “unwavering reinvestments,” foreshadowing the company’s acquisition.
BrainBox AI, based in Montreal, Canada, has been steadily expanding its footprint in the building automation and energy management market. In 2023, the company raised $20 million, including an investment from ABB in exchange for its multi-site retail energy management systems business in May 2023. Earlier this year, BrainBox launched ARIA, an generative AI-powered building management assistant that pulls data from internal and external sources — such as HVAC, lighting systems, weather forecasts, energy bills and utility tariffs — to streamline operations for facilities managers and operators.
Trane’s acquisition of BrainBox builds on a prior partnership between both companies. Last September, BrainBox AI announced that it would be integrating its technology into Trane’s Tracer SC+ cloud-based building automation system. Trane said the partnership, which focused on existing HVAC systems for multi-site retailers across North America, could reduce GHG emissions and operational costs for its customers.
Trane also announced a strategic collaboration with Autodesk last month to integrate the latter’s building information modeling platform with its TRACER platform.
BrainBox AI CEO Sam Ramadori and Chief Technology Officer Jean-Simon Venne will continue to lead the business and a team of more than 190 associates across the U.S. and Canada, the companies said.
