Quanta Services, Inc. recently announced it has completed the approximately $1.5 billion acquisition of Cupertino Electric, Inc. (CEI), a premier electrical infrastructure solutions provider to the technology, renewable energy and infrastructure, and commercial industries. Founded in 1954 and headquartered in San Jose, Calif., CEI provides integrated turnkey solutions, including engineering, procurement, project management, construction, and modularization services to a diverse customer base across the United States.
EC&M magazine ranked Quanta as the largest electrical contractor in the nation in its 2023 Top 50 Contractors listing with 2022 sales of $10.7 billion, while Cupertino was ranked #6 on the list with $2.04 billion in sales.
According to the press release, CEI's 70-year history includes more than 25 years of experience working with global leaders in the technology and data center industries. CEI performs the design and installation of critical electrical systems and is a premier custom manufacturer of modular electrical systems for large-scale data centers and has installed electrical systems in more than 20 million sq ft of data centers. Additionally, CEI is a leading renewable infrastructure solutions provider to the mid-sized utility-scale solar and battery storage market, offering turnkey engineering, procurement, construction, and commissioning capabilities.
The press release said that for the four years ending Dec. 31, 2023, Cupertino Electric, which has approximately 4,300 employees, achieved a double-digit compound annual growth rate (CAGR) of both revenues and net income. The company is expected to generate full-year 2024 revenues $2.1 billion to $2.2 billion
Duke Austin, Quanta's President and Chief Executive Officer, commented, "We are excited to announce the acquisition of CEI, a company we have admired for more than a decade, and we welcome CEI's employees to the Quanta family. CEI brings an exceptional management team and a premier craft-skilled workforce that complements Quanta's culture and will create a comprehensive electrical infrastructure solution offering that we believe can facilitate innovative solutions between utilities and large power consumers – from electron generation to transmission to consumption. Further, CEI provides Quanta a low-voltage electrical platform to further diversify and expand our customer base and service offerings. CEI has vibrant end-markets, a strong and visible project backlog and an accretive contribution to Quanta's growth, cash flow conversion, returns and earnings per share."
CEI's existing management team will remain in place, with Tom Schott continuing in his leadership role as President and Chief Executive Officer.
Full details on the acquisition can be read in the press release.
