Major infrastructure services provider Quanta Services set to acquire Dynamic Systems in a $1.35 billion deal.
Quanta Services Acquires Dynamic Systems for $1.35 Billion
Quanta Services, a leading specialty contracting services provider, has announced the acquisition of Dynamic Systems (DSI), a mechanical and process infrastructure solutions provider. The deal, valued at $1.35 billion, is a strategic move to broaden Quanta's service offerings and Total Addressable Market (TAM).
Founded in 1988 and headquartered in Austin, Texas, Dynamic Systems employs about 2,400 people and offers integrated mechanical solutions such as design, preconstruction, 3D modeling, modularization, construction, commissioning, and aftermarket services across the U.S. Approximately 80% of Dynamic Systems' business comes from repeat customers, making it a valuable addition to Quanta's customer base.
The acquisition combines $1.15 billion in cash with approximately $200 million in Quanta common stock, and an additional earnout of up to $216 million based on performance metrics. Dynamic Systems is projected to generate between $1 billion and $1.1 billion in revenues for the full year of 2025.
Dynamic Systems' management team, led by CEO Russell Rehmann, will remain in place post-acquisition to maintain continuity. The deal, completed in July 2025, was facilitated by J.P. Morgan Securities, who served as the exclusive financial advisor to Dynamic Systems.
Duke Austin, President and CEO of Quanta, expresses excitement about the acquisition. He believes that the partnership with Dynamic Systems will diversify Quanta's customer base and enhance its ability to provide cost- and labor-certain infrastructure solutions at scale. Russell Rehmann, CEO of Dynamic Systems, echoes this sentiment, expressing enthusiasm about the partnership, citing shared values, goals, and a commitment to excellence and integrity.
The acquisition enhances Quanta's comprehensive infrastructure solutions offering. It provides Quanta with a mechanical solutions platform that expands its TAM, particularly in the technology, semiconductor, and healthcare sectors, where Dynamic Systems has a strong presence. This expansion into high-growth verticals such as technology, semiconductor manufacturing, and healthcare that drive increasing power demand, particularly through data centers and critical load centers, is expected to contribute significantly to Quanta's financial performance.
The partnership supports Dynamic Systems' continued growth, opens new markets, and strengthens relationships with existing customers. It is expected to have immediate accretive impacts on Quanta's growth, cash flow conversion, and earnings per share. For 2026, projections estimate an adjusted EBITDA contribution between $125 million and $175 million and an adjusted diluted EPS increase of $0.32 to $0.47 (excluding synergies).
In summary, this acquisition marks a strategic and financial expansion for Quanta Services into infrastructure sectors critical to modern technology and healthcare facilities, positioning the company for enhanced revenue streams, diversified operations, and improved shareholder value in the medium term.
[1] Quanta Services Press Release, July 2025. [2] Dynamic Systems Press Release, July 2025. [3] Financial Times, July 2025. [4] Reuters, July 2025. [5] Bloomberg, July 2025.
The acquisition of Dynamic Systems, a mechanical and process infrastructure solutions provider, by Quanta Services for $1.35 billion seeks to broaden Quanta's service offerings and Total Addressable Market (TAM), particularly in the technology sector, where Dynamic Systems has a strong presence.
This expansion into high-growth verticals such as technology is expected to contribute significantly to Quanta's financial performance by providing a mechanical solutions platform that advances its TAM.
