Dycom Industries To Acquire Power Solutions In $1.95 Bln Cash And Stock Deal

Dycom Industries

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(RTTNews) - Dycom Industries, Inc. (DY), a provider of specialty contracting services, announced Wednesday it has signed a definitive agreement to acquire Power Solutions, LLC, one of the Mid-Atlantic's largest electrical contractors serving data centers, for a total consideration which values Power Solutions at $1.95 billion.

The purchase price is $1.95 billion, consisting of approximately $293 million payable in Dycom common stock and the remainder of the consideration payable in cash, subject to customary closing and post-closing adjustments.

Dycom plans to fund the cash portion of the transaction with a mix of cash on hand, a committed $1.0 billion senior secured term loan A facility and proceeds from a committed $700 million senior secured 364-day bridge loan facility.

The transaction is subject to customary closing conditions and is expected to close before the end of the fiscal year.

Power Solutions specializes in providing electrical infrastructure solutions for data centers and other critical facilities in the Greater Washington D.C., Maryland, and Virginia area, the world's largest data center hub.

Power Solutions' annual revenue is expected to be approximately $1.0 billion for calendar 2025, with compounded annual revenue growth of approximately 15% over the past four years.

At closing, Power Solutions will continue to operate under its brand within Dycom. Power Solutions' strong management team is expected to remain in place and the company will maintain its headquarters in Bowie, Maryland.

The proposed acquisition expands Dycom's exposure to the rapidly growing, mission-critical data center demand and establishes a natural extension platform for long-term growth and diversification.

It unlocks significant opportunity to scale Power Solutions' operations and further expand existing relationships with hyperscalers and other technology companies. It also adds substantial skilled labor capacity, combining two leading workforces.

The transaction is expected to be immediately accretive to Dycom's adjusted EBITDA margin and adjusted diluted earnings per share, excluding non-cash amortization of intangible assets. It is also projected to improve free cash flow for the combined company.