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HOLLYWOOD, Fla. - NV5 Global, Inc. (NASDAQ: NVEE), a provider of professional and technical engineering and consulting solutions, announced the acquisition of Herman Cx, a firm specializing in commissioning services for hyperscale data centers. This strategic move, completed today, aims to enhance NV5’s capabilities and presence in the data center market. The company, currently valued at $1.16 billion, has demonstrated strong financial health with impressive gross margins of 51.34% and a healthy current ratio of 1.95, according to InvestingPro data.
Herman Cx, established in 2016 and headquartered in Arizona, has been delivering quality assurance and commissioning services to support mission-critical data centers and related power generation infrastructure. With more than 90 years of combined employee experience, Herman Cx has completed projects across the United States and in ten countries, offering expertise in mechanical, electrical, plumbing, and control systems for facilities.
The acquisition, made through a combination of cash and NV5 stock, is expected to be immediately accretive to NV5’s earnings. NV5’s CEO, Ben Heraud, highlighted the acquisition’s role in expanding the company’s commissioning capabilities and fostering cross-selling opportunities for their MEP-technology design, fire protection, and power delivery services. Heraud emphasized the added value of a recurring revenue stream that extends beyond the initial design and construction phases of data center facilities. InvestingPro analysis suggests the company is currently undervalued, with revenue growing at 9.81% and analysts projecting continued net income growth this year.
Andrew Chang, Chief Operating Officer of Buildings and Technology at NV5, pointed to data centers as a key growth driver, with the sector experiencing over 20% organic growth. Chang expressed enthusiasm for the potential cross-selling opportunities that Herman Cx’s integration into NV5 could bring.
NV5, with a presence in over 100 offices nationwide and abroad, focuses on six main business verticals, including utility services, infrastructure engineering, and building technology. The company’s engineers and commissioning authorities are known for conducting design reviews, functional testing, and critical infrastructure testing to ensure data center systems meet design specifications. For deeper insights into NV5’s financial health and growth prospects, investors can access comprehensive analysis and 12 additional ProTips through InvestingPro’s detailed research reports, available for over 1,400 US stocks.
The acquisition is part of NV5’s ongoing strategy to enhance its service offerings and strengthen its market position in the rapidly growing data center sector. This information is based on a press release statement from NV5 Global, Inc.
In other recent news, NV5 Global Inc. reported its fourth-quarter 2024 earnings, with earnings per share (EPS) falling slightly short of expectations at $0.28 compared to the projected $0.30. However, the company exceeded revenue forecasts, bringing in $246.52 million against the anticipated $243.82 million. For the full year of 2024, NV5 achieved a revenue of $941.3 million, marking a 10% increase from the previous year. In addition to these financial updates, NV5 secured significant contracts, including $18 million for data center projects and a $5 million contract from the Florida Department of Transportation for work on the Florida Turnpike. The company continues to expand its presence in the data center industry, with innovative solutions such as immersion cooling and AI-driven thermal management. NV5 Global has also set ambitious revenue targets for 2025, aiming for between $1.026 billion and $1.045 billion, according to guidance from its executives. Furthermore, NV5 has been recognized for its strategic growth, with recent acquisitions enhancing its high-margin recurring services, particularly in the technology and infrastructure sectors.
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