Dycom Industries has announced the completion of its acquisition of Power Solutions, a major Mid-Atlantic electrical contractor specializing in data center infrastructure. The acquisition, valued at approximately $1.63 billion in cash and about one million shares of Dycom stock, positions Dycom to enhance its scale and technical capabilities in digital and data center infrastructure services. Power Solutions will continue to operate under its existing brand with its current management team and headquarters in Bowie, Maryland.

According to Dycom, Power Solutions is recognized as one of the largest electrical contractors serving data centers in the Mid-Atlantic region. Dycom provides services such as program management, planning, engineering and design, aerial and underground construction, maintenance, and fulfillment services focused on telecommunications and utility industries. The acquisition is expected to expand Dycom’s footprint in data center electrical contracting and related markets.

From a financial and operational perspective, Dycom reports that the transaction is expected to be immediately accretive to its adjusted EBITDA margin and adjusted diluted earnings per share, excluding non-cash amortization of intangible assets. Dycom also anticipates improved free cash flow as a result of the combined operations.

To support the acquisition, Dycom has amended its credit agreement. The changes include increasing the revolving facility commitments to $800 million, increasing the term loan facility to $1.54 billion, extending maturities through December 2030, and establishing a $600 million senior secured 364-day bridge loan facility. Proceeds from these facilities were used to refinance outstanding debt and finance the acquisition’s cash portion. Further details are to be published in a forthcoming Current Report on Form 8-K.

Source: Dycom Industries