Houston, TX, & Media, PA, Mar. 21, 2007 — 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 specialized contracting services company serving the electric power, natural gas, telecommunications and cable television industries.
Under the terms of the merger agreement, approved by both boards of directors, InfraSource stockholders will receive 1.223 shares of Quanta common stock for each outstanding common share of InfraSource they own at closing. This represents a per-share value of $30.13, or a 17.4% premium over the closing price of InfraSource common stock on March 16, 2007. Upon closing, on a fully diluted basis, Quanta and InfraSource stockholders are expected to own approximately 75% and 25%, respectively, of the combined company. The transaction is expected to be accretive to Quanta’s earnings per share in 2008.
The combined company will offer to provide customers expanded infrastructure service offerings from design and engineering, to installation and maintenance, to energized services and emergency restoration.
The transaction is expected to close in the third quarter of 2007 subject to stockholder and customary regulatory approvals. Quanta and InfraSource intend to file a joint proxy statement/prospectus with the Securities and Exchange Commission.
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