TECO Electric & Machinery (TPE:1504) agreed to acquire Malaysian engineering firm Dynaciate Engineering for about 200 million ringgit, according to a Monday press release.
Shares of the Taiwanese industrial conglomerate rose 1% at close of Tuesday's trade.
The move will strengthen TECO Electric's AI data center infrastructure business in Southeast Asia, it said.
The deal is expected to close before the end of August, with TECO taking a 78% stake.
The company said Dynaciate will act as a manufacturing and engineering hub for modular data center production, helping speed up project delivery and improve execution capacity.