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.
