IES Holdings to acquire DBM Global for $650 million

Houston - IES Holdings Inc. (NASDAQ: IESC) disclosed plans to acquire DBM Global Inc. from INNOVATE Corp. (NYSE: VATE) for around $650 million. The deal will be funded through a mix of cash and IES common stock, with the cash portion covered by existing funds and loans under a new credit arrangement with Wells Fargo. DBM Global, based in Phoenix, Arizona, reported a revenue of roughly $1.3 billion for the fiscal year ending March 31, 2026, employing about 3,400 people across multiple brands.

The purchase price, totaling approximately $685 million, is split equally between $545 million in cash and $140 million in IES stock, including a $35 million payment due to INNOVATE for a tax strategy under Section 338(h)(10) of the Internal Revenue Code. IES will initially take over INNOVATE's 91.2% stake in DBM Global, followed by the remaining minority shares via a short merger.

The completion of this transaction is anticipated in the December quarter of 2026, pending standard closing conditions such as regulatory clearances.