Willdan Group has entered into an agreement to acquire Mantis Innovation for $285 million in cash, expanding its energy management, building infrastructure and engineering capabilities for commercial and industrial customers. The transaction is expected to strengthen Willdan’s position in markets experiencing growing demand for energy efficiency, facility modernization, and electrical infrastructure.
The purchase price is subject to customary holdbacks and adjustments. Willdan expects the acquisition to close in the fourth quarter of 2026, subject to antitrust review and other customary closing conditions.
Headquartered in Houston, Mantis provides building controls, energy efficiency, energy advisory and facility management services. The company has more than 220 employees and serves customers across several industries, including data centers, food and beverage, and healthcare.
Willdan expects Mantis to generate approximately $120 million in net revenue in 2026, with an adjusted EBITDA margin in the low 20% range. Based on that revenue forecast, the $285 million acquisition price represents approximately 2.4 times expected annual net revenue.
The acquisition is also expected to be accretive to Willdan’s earnings in 2027, making it a potentially significant contributor to the company’s financial performance following integration.
The transaction will broaden Willdan’s portfolio of energy management and infrastructure services while expanding its relationships with commercial and industrial customers that operate energy-intensive facilities.
Mantis brings expertise across several areas that complement Willdan’s existing business, particularly building automation, energy optimization and facility operations.
Building controls represent an important component of the acquisition. These systems help commercial and industrial customers monitor and regulate building equipment, improving operational efficiency while providing greater visibility into energy consumption.
As organizations seek to reduce operating costs and modernize aging facilities, building automation and energy management technologies are becoming increasingly important components of infrastructure investment.
Mantis’s capabilities could help Willdan address those requirements through a broader combination of engineering, technology implementation and ongoing facility management services.
The acquisition also gives Willdan additional exposure to the data center market, where power availability and energy efficiency have become major considerations for operators.
The rapid expansion of artificial intelligence and cloud computing is increasing demand for data center infrastructure. These facilities require substantial electricity to operate computing equipment, cooling systems and supporting infrastructure.
Managing that energy consumption efficiently is an important financial and operational consideration.
Building controls and energy advisory services can help data center operators evaluate infrastructure requirements, identify efficiency improvements and manage energy-related operating expenses.
Mantis’s experience serving the sector could provide Willdan with additional opportunities as customers build new facilities and upgrade existing infrastructure.
The food and beverage industry represents another area where the companies’ combined capabilities may be relevant.
Manufacturing and processing facilities often have significant energy requirements associated with refrigeration, heating, cooling and production equipment.
Improving energy efficiency can help these businesses reduce operating expenses while maintaining the reliability required for continuous production.
Healthcare facilities face similarly complex requirements. Hospitals and other medical buildings depend on reliable electrical and mechanical systems and frequently operate around the clock.
Energy management and building controls can help those organizations improve facility performance while supporting operational continuity.
Mantis’s established presence in these industries adds to Willdan’s ability to serve customers with demanding energy and infrastructure requirements.
The transaction also expands Willdan’s capabilities in energy advisory services.
Commercial and industrial organizations increasingly need to evaluate electricity procurement, energy consumption, facility upgrades and longer-term infrastructure investments.
Advisory services can help customers identify potential projects and determine how energy efficiency and infrastructure improvements fit within their operating and financial objectives.
Combining those capabilities with engineering and implementation services creates opportunities for Willdan to participate in more stages of a customer’s infrastructure investment process.
Rather than focusing solely on individual engineering or energy efficiency projects, the expanded organization could potentially support customers from initial assessment and project development through implementation and ongoing facility management.
That broader service offering could also create opportunities to expand relationships with existing customers of both companies.
For Willdan, the acquisition represents a substantial investment in a business with an established revenue base and complementary technical expertise.
The company’s expectation that Mantis will generate $120 million in net revenue during 2026 provides an indication of the scale being added to Willdan’s operations.
The forecast adjusted EBITDA margin in the low 20% range also suggests that management expects Mantis to contribute meaningful operating earnings following completion.
Willdan anticipates the acquisition will add to earnings in 2027, although the eventual contribution will depend on Mantis’s operating performance, financing expenses and integration costs.
To fund the transaction, Willdan plans to establish a new $250 million term loan, for which it has received a fully underwritten financing commitment.
The company expects to finance the remaining purchase consideration using cash on hand and borrowings under its existing credit facilities.
The financing structure will allow Willdan to complete the acquisition primarily through debt while retaining some flexibility around the use of existing liquidity.
However, the additional borrowing will also increase the company’s financing obligations, making cash flow generation and successful integration important considerations following completion.
Willdan’s board of directors unanimously approved the acquisition.
The transaction remains subject to antitrust review and other customary closing conditions, with completion expected during the fourth quarter of 2026.
Jefferies served as Mantis Innovation’s exclusive financial advisor.
The acquisition reflects Willdan’s continued expansion into services that help organizations manage increasingly complex energy and infrastructure requirements.
Growing electricity demand, aging building systems and the need for more efficient facility operations are creating opportunities for companies offering integrated engineering and energy management solutions.
By adding Mantis’s building controls, energy advisory and facility management capabilities, Willdan will be positioned to serve a broader range of commercial and industrial infrastructure needs.
The addition of more than 220 employees will also expand Willdan’s technical resources and customer relationships, particularly in energy-intensive industries.
If completed as planned, the $285 million acquisition will add a business expected to generate $120 million in annual net revenue while expanding Willdan’s exposure to data centers, healthcare, food and beverage, and other markets requiring sophisticated energy management services.
With closing anticipated in the fourth quarter of 2026 and earnings accretion expected in 2027, the transaction represents a significant step in Willdan’s strategy to expand its energy management and infrastructure platform.
KEY QUOTES:
“This addition significantly strengthens our energy procurement offering, industrial energy efficiency business, and positions Willdan for the growing demand of new energy-efficient data centers.”
Mike Bieber, CEO of Willdan
“Together, we will be better positioned to help our clients solve complex challenges.”
Darrell Whitley, CEO of Mantis Innovation
