Quanta Services Acquires Dynamic Systems for $1.6 Billion

Quanta Services acquired Dynamic Systems from Faulkner Group for $1.6 billion. The deal includes a $1.15 billion cash payment, $202.5 million in Quanta common equity, and a $216 million earnout payment. J.P. Morgan Securities advised Dynamic Systems on the transaction. Quanta funded the cash portion through commercial paper and its senior credit facility.

Quanta Services, Inc. (NYSE: PWR) has completed the acquisition of Dynamic Systems, Inc. from Faulkner Group, Inc. for $1.6 billion, marking a significant strategic move in the infrastructure solutions sector. The acquisition includes a $1.15 billion cash payment, $202.5 million in Quanta common equity, and a $216 million earnout payment. J.P. Morgan Securities LLC acted as the financial advisor for Dynamic Systems, Inc. [1]

The deal was funded by Quanta Services through a combination of drawings under its commercial paper program and its existing senior credit facility. The transaction closed on July 25, 2025, with Dynamic Systems' existing management team, led by CEO Russell Rehmann and President Jeff Vogt, continuing to run the business. This acquisition aligns with Quanta's strategy to expand its comprehensive infrastructure solutions offering and diversify its customer base, particularly in growing end-markets such as technology, healthcare, and industrial sectors [2].

Dynamic Systems, founded in 1988 and headquartered in Austin, Texas, provides integrated turnkey mechanical and process solutions, including design, preconstruction, 3D modeling, modularization, construction, commissioning, and after-market services. The company has a strong track record of growth, achieving a solid double-digit compound annual growth rate (CAGR) of both revenues and adjusted EBITDA over the past three years [2].

Quanta Services expects Dynamic Systems to contribute meaningfully to its financial profile in the near and longer term. For the remainder of 2025, Quanta estimates Dynamic Systems will contribute revenues of $425 million to $475 million, adjusted EBITDA of $45 million to $55 million, and adjusted diluted EPS of $0.08 to $0.12. For the full-year of 2026, Quanta estimates Dynamic Systems will contribute revenues of $1.25 billion to $1.45 billion, adjusted EBITDA of $125 million to $175 million, and adjusted diluted EPS of $0.32 to $0.47 [2].

The acquisition is expected to enhance Quanta's ability to provide cost- and labor-certain infrastructure solutions at scale and expand its total addressable market. The integration of Dynamic Systems' mechanical capabilities with Quanta's industry-leading expertise in electric, power grid, and generation will enable Quanta to offer more comprehensive, solutions-driven craft labor services to customers [2].

References:
[1] https://www.marketscreener.com/news/quanta-services-inc-acquired-dynamic-systems-inc-from-faulkner-group-inc-for-1-6-billion-ce7c5fdddf8fff22
[2] https://www.citybiz.co/article/725145/quanta-services-acquires-dynamic-systems/