Quanta Services, Inc. and InfraSource Services, Inc. announced that they have signed a definitive merger agreement under which Quanta will acquire InfraSource in an all-stock transaction valued at $1.26 billion based on Quanta’s closing stock price on March 16, 2007. The combination of Quanta and InfraSource will create a leading specialized contracting services company serving the electric power, natural gas, telecommunications and cable television industries. Empowered by a broad national footprint, flexible workforce, extensive equipment resources and innovative technologies, the combined company will partner with customers to meet the immediate and growing need for strategic infrastructure solutions.
As a combined company, we will be well-positioned to serve all of our customers during a period of rapid growth and increased transmission and distribution spending,” said John R. Colson, chairman and chief executive officer of Quanta. “We intend to leverage our combined workforce of more than 16,000 employees to provide expanded services to our customers in both planned and emergency situations.” Colson added, “We expect the combination to result in meaningful cost and operational synergy opportunities, including the integration of project and asset management functions, improved resource utilization, procurement and administrative cost savings, and enhanced cross-selling and marketing opportunities.”
David R. Helwig, chairman and chief executive officer of InfraSource, commented, “Thistransaction represents a tremendous opportunity for our customers, stockholders and employees to share in the significant upside potential of a stronger combined business. Together, InfraSource and Quanta will create an industry-leading company with the scale and scope necessary to meet the growing infrastructure needs of energy and communications providers across North America.”
The combined company will have the ability to provide customers expanded infrastructure service offerings from design and engineering, to installation and maintenance, to energized services and emergency restoration. Along with enhancing and complementing Quanta’s electric power transmission and distribution capabilities, InfraSource brings strength in substation engineering and installation, gas distribution capabilities and dark fiber leasing to the combined company. In addition, Quanta’s nationwide footprint will be strengthened, providing the company a broader platform from which to grow its services.
The transaction is expected to close in the third quarter of 2007 subject to stockholder and customary regulatory approvals.
