Quanta to Sell Telecommunications Subsidiaries
By: Leon Castles
on Saturday, November 24, 2012
Houston based Quanta Services Inc has made an announcement that they are planning to sell off their telecommunication subsidiaries to Dycom Industries for $275 million in cash. The company said that the subsidiaries that they are planning to sell out to Dycom covers all of Quanta’s domestic telecommunications and infrastructure services and therefore they would like to provide that all to Dycom in just one deal. The company said that they need funds that can offer them more financial flexibility in the future and the proceeds of this deal will be for growth initiatives associated with electric power and pipeline infrastructure.
Jim O’Neil President and CEO of Quanta said that significant electric power infrastructure investments are required by the company at the moment and therefore they are planning to sell out the telecommunications subsidiaries. The company said that at the moment they are focusing on major infrastructure expansion. The CEO said that the deal will allow company to focus on better strategies in the future as they have the funds to make that into reality. In the coming years, Quanta will be working on substantial development of North American energy resources that is required. The company claims that once the deal is through it will close by the end of 2013 and will offer them with more funds that will be helpful to their shareholders as well.