Modine Manufacturing Co. (NYSE:MOD) stock surged nearly 23% in Friday's premarket trading after a report said Samsung Electronics Co., Ltd. (OTC:SSNLF) is in talks to acquire the U.S. data center cooling equipment maker.

The companies are discussing a potential deal that could materialize within weeks, Bloomberg reported, citing people familiar with the matter.

However, no final decision has been made, and negotiations could collapse. Another potential buyer could also emerge.

Why Samsung Wants Modine

A potential acquisition would strengthen Samsung's position in the rapidly expanding artificial intelligence infrastructure market.

Modine manufactures thermal management systems, including cooling equipment for large data centers.

The Wisconsin-based company has benefited from rising demand among hyperscale customers investing in AI infrastructure.

Bloomberg Intelligence analyst Masahiro Wakasugi said an acquisition could help Samsung diversify beyond its memory chip business.

Meanwhile, analyst Christina Feehery highlighted Modine's growing appeal following its transformation into a dedicated thermal management company.

Modine completed the spin-off of its Performance Technologies business on Oct. 1, sharpening its focus on data center cooling and commercial HVAC.

Samsung has also expanded its thermal solutions business through acquisitions. Last year, it purchased Germany-based FläktGroup for approximately $1.7 billion.

Modine's Data Center Revenue Jumps 95%

On Nov. 3, Modine reported second-quarter fiscal 2027 adjusted earnings of $1.35 per share, missing analysts' estimate of $1.45.

Revenue surged 35% year over year to $994.4 million, beating the $943.718 million estimate.

Data Centers segment revenue jumped 95% to $439.7 million, driven by strong demand from North American hyperscale customers.

Commercial HVAC revenue increased 23% to $285.5 million.

However, gross margin narrowed by 160 basis points to 20.7%, reflecting higher material costs and tariffs.

Modine also raised its fiscal 2027 outlook for its continuing businesses.

The company expects revenue of $3.1 billion to $3.2 billion and adjusted EBITDA of $470 million to $500 million.

The outlook excludes the spun-off Performance Technologies business.

MOD Price Action

MOD Stock Price Activity: Modine Manufacturing shares were up 22.53% at $130.00 during premarket trading on Friday, according to market data.

The stock had fallen approximately 15% since its Nov. 3 earnings announcement before the takeover report revived investor interest.