Dycom Industries, a US-based specialty contractor for digital infrastructure, is set to acquire Power Solutions, an electrical contractor serving data centers, for $1.95 billion.

Power Solutions, headquartered in Bowie, Maryland, provides electrical infrastructure for data centers and other critical facilities across the Greater Washington D.C., Maryland, and Virginia area. Following the acquisition, Power Solutions will continue to operate under its brand, retaining its management team and headquarters.

“This is a milestone acquisition for Dycom that diversifies our business and significantly enhances our potential to generate long-term growth and value creation,” said Dycom president and CEO Dan Peyovich. “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.”

The acquisition expands Dycom’s presence in the data center sector, with more than 90 percent of Power Solutions’ revenue derived from data center projects. The agreement will also add Power Solutions' electrical contracting capabilities to Dycom’s portfolio, potentially creating opportunities for integrated service offerings and potential expansion into other high-growth regions.

The $1.95bn purchase price includes $293m in Dycom common stock, with the remainder paid in cash. Dycom will fund the cash portion using cash on hand, a $1bn senior secured term loan A facility, and a $700m senior secured 364-day bridge loan.

Dycom has made several notable acquisitions within the digital infrastructure and telco spaces. Last August, the company acquired Black & Veatch’s public carrier wireless telecommunications infrastructure business for $150m.

Founded in 1969, Dycom provides specialty contracting services to the telecommunications infrastructure and utility industries throughout the US, operating across all 50 states.

The company supplies telecom providers with an array of services, including program management, planning, engineering and design, aerial, underground, and wireless construction, maintenance, and fulfillment services.