Quanta Services Acquires MasTec USO for $1.05B
Ticker: PWR · Form: 8-K · Filed: 2024-07-22T00:00:00.000Z
Sentiment: neutral
Topics: acquisition, definitive-agreement, debt
Related Tickers: MTZ
TL;DR
Quanta just bought MasTec's utility biz for $1.05B - big expansion incoming!
AI Summary
On July 16, 2024, Quanta Services, Inc. entered into a material definitive agreement related to its acquisition of Mastec's Utility Services Organization (USO) segment for $1.05 billion. This transaction is expected to significantly expand Quanta's utility operations and enhance its market position.
Why It Matters
This acquisition is a significant strategic move for Quanta Services, aiming to bolster its presence in the utility sector and potentially drive future revenue growth.
Risk Assessment
Risk Level: medium — The acquisition involves a substantial financial commitment and integration risks, which could impact Quanta's financial performance and operational efficiency.
Key Numbers
- $1.05B — Acquisition Price (Quanta Services' purchase of MasTec's Utility Services Organization segment.)
Key Players & Entities
- Quanta Services, Inc. (company) — Registrant
- MasTec (company) — Seller of acquired segment
- Utility Services Organization (USO) (company) — Acquired segment
- $1.05 billion (dollar_amount) — Acquisition price
- July 16, 2024 (date) — Date of material definitive agreement
FAQ
What is the primary purpose of this 8-K filing?
This filing reports Quanta Services, Inc.'s entry into a material definitive agreement for the acquisition of MasTec's Utility Services Organization segment and related financial obligations.
What was the acquisition price for MasTec's Utility Services Organization?
The acquisition price was $1.05 billion.
When was the material definitive agreement entered into?
The agreement was entered into on July 16, 2024.
Which segment of MasTec is Quanta Services acquiring?
Quanta Services is acquiring MasTec's Utility Services Organization (USO) segment.
What are the key items reported in this 8-K filing?
The key items include the entry into a material definitive agreement, completion of an acquisition, creation of a financial obligation, and Regulation FD disclosure.
Filing Stats: 1,689 words · 7 min read · ~6 pages · Grade level 11.9 · Accepted 2024-07-22 16:33:01
Key Financial Figures
- $0.00001 — nge on which registered Common Stock, $0.00001 par value PWR New York Stock Exchan
- $400.0 million — an aggregate principal amount of up to $400.0 million (the "Short-Term Facility") and matures
- $1.505 b — (as defined in the Merger Agreement) is $1.505 billion, subject to certain adjustments s
- $225.75 million — ment. Pursuant to the Merger Agreement, $225.75 million (such agreed value as of the execution
- $200 million — ional contingent consideration of up to $200 million to the extent certain financial perform
Filing Documents
- d841267d8k.htm (8-K) — 37KB
- d841267dex21.htm (EX-2.1) — 705KB
- d841267dex101.htm (EX-10.1) — 580KB
- d841267dex991.htm (EX-99.1) — 35KB
- g841267g0720040609968.jpg (GRAPHIC) — 3KB
- 0001193125-24-182240.txt ( ) — 1789KB
- pwr-20240716.xsd (EX-101.SCH) — 3KB
- pwr-20240716_lab.xml (EX-101.LAB) — 17KB
- pwr-20240716_pre.xml (EX-101.PRE) — 11KB
- d841267d8k_htm.xml (XML) — 3KB
Financial Statements and Exhibits
Financial Statements and Exhibits. (d) Exhibits. Exhibit No. Exhibit 2.1* Agreement and Plan of Merger, dated as of July 17, 2024, by and among Quanta Services, Inc., Quanta Merger Sub, Inc., Cupertino Electric, Inc., Fortis Advisors LLC, as Securityholder Representative, and solely for the purposes of certain sections specified in the Merger Agreement, the Designated Company Shareholders and the Designated Company SAR Holders. 10.1 Credit Agreement, dated as of July 16, 2024, by and among Quanta Services, Inc., as Borrower, the lenders party thereto and Bank of America, N.A., as Administrative Agent 99.1 Press Release of Quanta Services, Inc. dated July 18, 2024 104 Cover Page Interactive Data File (the cover page XBRL tags are embedded within the Inline XBRL document) * Annexes, schedules and certain exhibits have been omitted pursuant to Item 601(a)(5) of Regulation S-K. The Company hereby undertakes to furnish supplemental copies of any of the omitted annexes, schedules and exhibits upon request by the SEC.
SIGNATURES
SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. Dated: July 22, 2024 Quanta Services, Inc. By: /s/ Jayshree S. Desai Name: Jayshree S. Desai Title: Chief Financial Officer