Quanta Services (PWR) to Sell Telecom Subsidiaries in $275M Cash Deal w/ Dycom (DY)

November 19, 2012 5:46 PM EST Send to a Friend
Quanta Services, Inc. (NYSE: PWR) today announced that it has entered into a definitive agreement to sell its telecommunications subsidiaries to Dycom Industries, Inc. (NYSE: DY) for approximately $275 million in cash, subject to final adjustments. The subsidiaries included in the transaction comprise substantially all of Quanta's domestic telecommunications infrastructure services operations. Quanta intends to use the proceeds of the transaction to support its ongoing strategic growth initiatives primarily associated with electric power and pipeline infrastructure and for general corporate purposes. The required waiting period under the Hart-Scott Rodino Act has expired, and subject to customary conditions, the transaction is expected to close by December 31, 2012. Stephens Inc. served as financial advisor to Quanta Services in the transaction.

The subsidiaries in the transaction account for substantially all of Quanta's domestic telecommunications infrastructure services operations. The trailing twelve month revenues through September 30, 2012, associated with these subsidiaries were approximately $535 million, which includes approximately $34 million for services performed within Quanta's Fiber Optic Licensing segment and approximately $39 million of revenues from other Quanta segments. After closing the transaction, Quanta plans to disclose the estimated financial effects of the transaction on this year's fourth quarter and full year 2012 results.


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