Dycom to acquire Power Solutions for $1.95B

Dycom (DY) Industries signed a definitive agreement to acquire Power Solutions for a total consideration which values Power Solutions at $1.95B. The transaction is subject to customary closing conditions and is expected to close before the end of the fiscal year. Power Solutions specializes in providing electrical infrastructure solutions for data centers and other critical facilities in the Greater Washington D.C., Maryland, and Virginia area. With over 2,800 highly skilled employees, Power Solutions is a leading contractor of choice in the region, with strong customer relationships and a 25-year track record of high-quality execution. Power Solutions’ annual revenue is expected to be approximately $1B for calendar 2025. The company’s compounded annual revenue growth has been approximately 15% over the past four years, a trajectory that is expected to continue in calendar 2026. Power Solutions has consistently delivered Adjusted EBITDA margins in the mid-to-high teens, and this level of profitability is expected to be sustained in calendar 2026. This outlook is supported by a total backlog that currently exceeds $1B. At closing, Power Solutions will continue to operate under its brand within Dycom. Power Solutions’ strong management team is expected to remain in place and the company will maintain its headquarters in Bowie, Maryland. The transaction is expected to be immediately accretive to Dycom’s Adjusted EBITDA margin and Adjusted Diluted Earnings Per Share, excluding non-cash amortization of intangible assets. It is also projected to improve free cash flow for the combined company. The purchase price is $1.95B, consisting of approximately $293M payable in Dycom common stock and the remainder of the consideration payable in cash, subject to customary closing and post-closing adjustments. Dycom plans to fund the cash portion of the transaction with a mix of cash on hand, a committed $1B senior secured term loan A facility and proceeds from a committed $700M senior secured 364-day bridge loan facility. Pro forma net leverage is expected to be below 3.0x at closing, and the free cash flow profile of the combined business is anticipated to provide a clear path to de-lever to approximately 2.0x net leverage in the next 12-18 months, maintaining Dycom’s financial flexibility for continued strategic growth.