Dycom Industries, Inc. announced the acquisition of Power Solutions, LLC for $1.95 billion.
Power Solutions specializes in electrical infrastructure solutions for data centers in the Greater Washington D.C., Maryland, and Virginia area.
The acquisition is expected to accelerate Dycom's growth in digital and data center infrastructure services.
Strategic Acquisition
The acquisition of Power Solutions positions Dycom for long-term growth and diversification in the data center sector.
Financial Outlook
Power Solutions' annual revenue is expected to be approximately $1.0 billion in 2025, with a 15% annual growth rate.
Operational Synergies
Power Solutions' skilled workforce of over 2,800 employees will integrate with Dycom, enhancing operational capacity.
- The acquisition expands Dycom's exposure to the rapidly growing data center demand, with over 90% of Power Solutions' revenue coming from data center projects.
- It establishes a natural extension platform for long-term growth by diversifying Dycom's business and offering turnkey capabilities at scale.
- The transaction is expected to be immediately accretive to Dycom's Adjusted EBITDA margin and improve free cash flow for the combined company.
The acquisition of Power Solutions is a milestone for Dycom, enhancing its capabilities and positioning it for sustained growth in the digital infrastructure sector.