Indianapolis-based Infrastructure and Energy Alternatives Inc. (Nasdaq: IEA) has entered into an agreement to be acquired by MasTec Inc. (NYSE: MTZ), an infrastructure construction company headquartered in Florida, in a deal valued at $1.1 billion.
Under the terms of the deal, IEA stockholders will receive $14.00 per share, which includes a combination of $10.50 per share in cash and 0.0483 of a MasTec share, with a value of $3.50 per share.
The transaction has been approved by the boards of directors of both companies. Pending stockholder and regulatory approval, they expect to close in the fourth quarter of 2022.
IEA has completed more than 260 utility-scale wind and solar projects across North America, which proved attractive to MasTec.
“We are proud to expand our service capabilities, scale and expertise providing critical infrastructure to support the nation’s energy transition to secure and sustainable renewable sources,” said MasTech Chief Executive Officer Jose Mas.
IEA will continue to be headquartered in Indianapolis and will become part of MasTec’s Clean Energy and Infrastructure segment.
IEA President and CEO JP Roehm will continue to lead the IEA operation.
“Our joint resources and capabilities will advance our ability to serve our customers in the renewable energy, power delivery and infrastructure markets,” said Roehm. “We believe that IEA stockholders will benefit from MasTec and IEA’s combined operations and scale, and this belief is reflected in our agreement to receive 25% of the transaction proceeds in MasTec common stock.”
According to the Indianapolis Business Journal, MasTec had annual revenue last year of $7.95 billion, making it nearly four times as large as IEA, which rang up revenue last year of about $2.1 billion.