Dycom Industries has entered into a definitive agreement to acquire Power Solutions for a total valuation of $1.95 billion, marking one of the company’s most significant expansion moves into the rapidly growing data center infrastructure sector. The acquisition is expected to close before the end of the fiscal year, pending customary approvals.
The deal positions Dycom to deepen its presence in mission-critical digital infrastructure markets by adding one of the Mid-Atlantic region’s largest electrical contractors serving data centers. Power Solutions brings more than 2,800 skilled employees, long-standing relationships with hyperscale and technology customers, and a 25-year record of consistent execution in the Greater Washington D.C., Maryland, and Virginia region. The company’s annual revenue is projected to reach approximately $1.0 billion in calendar 2025 with a compounded annual revenue growth rate of about 15 percent over the past four years. Power Solutions has maintained Adjusted EBITDA margins in the mid- to high-teens, a level expected to continue in calendar 2026, supported by a backlog exceeding $1 billion.
Following the close of the transaction, Power Solutions will continue operating under its existing brand with its leadership team remaining in place and its headquarters maintained in Bowie, Maryland.
The acquisition provides Dycom with an expanded platform to support increasing data center construction demand. Analysts project that the United States data center capacity requirements could grow at a rate of 20 to 25 percent annually through 2030. The Greater Washington region alone accounts for 27 percent of operational capacity in the United States data center markets. It is forecasted to capture 30 percent of the capacity currently under development or planned.
The transaction also enhances Dycom’s ability to provide integrated services combining its fiber capabilities with Power Solutions’ electrical infrastructure expertise. It creates significant opportunities for cross-selling and expansion into additional high-growth geographies. Dycom gains substantial labor capacity, adding a large workforce capable of self-performing complex electrical contracting services across large-scale digital infrastructure projects.
Financially, the acquisition 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 additionally projected to contribute to increased free cash flow generation for the combined company. Transaction financing includes approximately $293 million payable in Dycom common stock, with the remaining consideration funded in cash through a mix of cash on hand, a committed $1.0 billion senior secured term loan A facility, and a committed $700 million senior secured bridge loan facility. Dycom expects pro forma net leverage below three times at closing and anticipates reducing leverage to approximately two times within the next twelve to eighteen months.
Support: Goldman Sachs advised Dycom on the financial aspects of the acquisition, with Weil, Gotshal & Manges serving as legal counsel. Source One Business Services advised Power Solutions, alongside legal counsel Miles & Stockbridge PC.
KEY QUOTES
“This is a milestone acquisition for Dycom that diversifies our business and significantly enhances our potential to generate long-term growth and value creation. Power Solutions is a recognized leader and positions us to benefit from continued strong demand for digital infrastructure solutions among hyperscalers and other industry participants. Our customers will benefit from our expanded capabilities to support data center development by combining Dycom’s expertise in fiber and Power Solutions’ leadership in electrical, two of the most critical elements in digital infrastructure.”
“Dycom and Power Solutions share similar cultures with a focus on safety and quality, raising the bar for our customers, and a commitment to people as our greatest asset. Power Solutions’ skilled workforce, exceptional leadership team and deep relationships with top-tier customers are expected to support durable growth. I am excited to work with the team to realize the opportunities in front of us.”
Dan Peyovich, President And Chief Executive Officer, Dycom
