Quanta Buys Cupertino Electric in Blockbuster Contractor Deal for $1.54 Billion

In one of the largest electrical contractor acquisitions in years, Quanta Services Inc., Houston,  has acquired Cupertino Electric Inc. (CEI), San Jose, CA.

Founded in 1954, Cupertino Electric provides integrated turnkey solutions, including engineering, procurement, project management, construction and modularization services to a diverse customer base across the United States. Cupertino is widely respected for the business it has built in data center work and mainstream commercial and industrial construction, while Quanta has become a powerhouse in utility and renewables construction.

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 Quanta press release, the 70-year-old Cupertino Electric performs the design and installation of critical electrical systems and is a custom manufacturer of modular electrical systems for large-scale data centers. It has installed electrical systems in more than 20 million sq ft of data centers. The company 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. In addition, Cupertino  provides engineering, procurement and construction services of electrical systems for the infrastructure and commercial markets.

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 CEO said in the press release, "We are excited to announce the acquisition of Cupertino Electric, a company we have admired for more than a decade, and we welcome Cupertino Electric’s  employees to the Quanta family.

“The company 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, Cupertino 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.”

Cupertino’s  existing management team will remain in place, with Tom Schott continuing in his leadership role as president and CEO.