8-KAcquisitions & DispositionsMaterial AgreementsFinancial Events+2

QUANTA SERVICES, INC. 8-K Report, Material Agreement (Jul 22, 2024)

Filed July 22, 2024For Securities:PWR

Summary

Quanta Services, Inc. (PWR) has filed an 8-K report detailing a significant event: the completion of its acquisition of Cupertino Electric, Inc. (CEI) on July 17, 2024. The total estimated merger consideration is $1.505 billion, comprising both cash and shares of Quanta's common stock. To fund a portion of the cash component, Quanta secured a $400.0 million, 90-day senior unsecured credit facility on July 16, 2024, which it fully drew down. The acquisition of CEI, a provider of electrical infrastructure solutions, is expected to expand Quanta's capabilities in the technology, renewable energy, and infrastructure sectors.

Key Highlights

  • 1Quanta Services completed the acquisition of Cupertino Electric, Inc. (CEI) on July 17, 2024.
  • 2The total estimated merger consideration for CEI is $1.505 billion, paid via a mix of Quanta's common stock and cash.
  • 3Quanta entered into a $400.0 million, 90-day senior unsecured credit facility on July 16, 2024, to finance part of the acquisition's cash component.
  • 4The full $400.0 million from the short-term facility was borrowed and used for the acquisition and related fees.
  • 5CEI specializes in electrical infrastructure solutions for technology, renewable energy, and infrastructure sectors.
  • 6There is potential for additional contingent consideration of up to $200 million based on CEI's future financial performance.
  • 7The short-term credit facility matures on October 14, 2024, and carries interest rates tied to Term SOFR or a Base Rate.

Frequently Asked Questions

The $400.0 million short-term credit facility was primarily used to finance a portion of the cash consideration paid for the acquisition of Cupertino Electric, Inc. (CEI) and to cover related fees and expenses.

The estimated merger consideration for CEI is $1.505 billion, subject to certain adjustments. Additionally, there is a provision for up to $200 million in contingent consideration if CEI meets certain performance targets post-acquisition.

The short-term credit facility matures on October 14, 2024. Borrowings bear interest at the Company's option, at a rate equal to either Term SOFR plus 1.375% or the Base Rate plus 0.375%.

Cupertino Electric, Inc. (CEI) provides electrical infrastructure solutions, including engineering, procurement, project management, construction, and modularization services, primarily serving customers in the technology, renewable energy, and infrastructure and commercial industries across the United States.