Quanta Services Closes Acquisition Of Cupertino Electric
(RTTNews) - Quanta Services, Inc. (PWR) announced Thursday that it completed the acquisition of Cupertino Electric, Inc., a premier electrical infrastructure solutions provider, to create a comprehensive end-to-end electrical infrastructure solution from electron generation to transmission to consumption.
The acquisition provides a highly synergistic low-voltage electrical workforce and complementary customer base and a platform for growth across several strategic verticals that are driving load growth.
The acquisition is expected to be immediately accretive to Quanta's growth, cash flow conversion and earnings per share excluding expected synergies.
It estimates full-year 2025 adjusted EBITDA and adjusted earnings per share contributions of approximately $175 million to $195 million and $0.40 to $0.50, respectively.
The upfront transaction consideration was approximately $1.54 billion, consisting of approximately $1.3 billion in cash, subject to certain closing adjustments, as well as approximately 883,000 shares of Quanta common stock valued at approximately $225 million.
Additionally, there is a potential earnout payment of up to $200 million to the extent certain financial performance targets are achieved during a post-acquisition period.
Quanta funded the cash portion of the transaction with a combination of cash on hand, drawings under its existing credit facility and a short-term term loan facility. The transaction closed on July 17, 2024.
