QUANTA SERVICES INC, QUANTA SERVICES MANAGEMENT ...

healthcare customers, as well as other entities with high bandwidth telecommunication needs. The
telecommunication services provided through this segment are subject to regulation by the Federal
Communications Commission and certain state public utility commissions.
Recent Investments and Acquisitions
On October 5, 2011, we acquired Utilimap Corporation (Utilimap), which provides geographic information
system (GIS) utility asset management and engineering services to the electric utility industry. The aggregate
consideration paid for Utilimap consisted of approximately $24.5 million in cash, 553,526 shares of our common
stock valued at approximately $9.7 million and the repayment of $0.8 million in debt. As this transaction was
effective October 5, 2011, the results of Utilimap have been included in our consolidated financial statements
beginning on such date. This acquisition enables us to further enhance our electric power infrastructure service
offerings. Utilimap’s financial results will generally be included in our Electric Power Infrastructure Services
segment.
On August 11, 2011, we acquired Coe Drilling Pty. Ltd. (Coe), a horizontal directional drilling company
based in Brisbane, Australia. The aggregate consideration paid for Coe consisted of approximately $10.5 million
in cash, 396,643 shares of our common stock valued at approximately $6.3 million and the repayment of $1.8
million in debt. As this transaction was effective August 11, 2011, the results of Coe have been included in our
consolidated financial statements beginning on such date. This acquisition allows us to further expand our
capabilities and scope of services internationally. Coe’s financial results will generally be included in our Natural
Gas and Pipeline Infrastructure Services segment.
On August 5, 2011, we acquired McGregor Construction 2000 Ltd. and certain of its affiliated entities
(McGregor), an electric power infrastructure services company based in Alberta, Canada. The aggregate
consideration paid for McGregor consisted of approximately $38.6 million in cash, 898,440 shares of our
common stock valued at approximately $14.6 million and the repayment of $0.8 million in debt. As this
transaction was effective August 5, 2011, the results of McGregor have been included in our consolidated
financial statements beginning on such date. This acquisition allows us to further expand our capabilities and
scope of services in Canada. McGregor’s financial results will generally be included in our Electric Power
Infrastructure Services segment.
Also in 2011, we acquired two other businesses based in British Columbia, Canada that predominantly
provide electric power infrastructure services, which have been reflected in our consolidated financial statements
as of their respective acquisition dates. In connection with these acquisitions, we paid the former owners of the
businesses an aggregate of approximately $7.3 million in cash and issued an aggregate of 91,204 shares of our
common stock valued at approximately $1.7 million. The results of these businesses are included in our
consolidated financial statements beginning on their respective acquisition dates. These acquisitions allow us to
further expand our capabilities and scope of services in Canada. The financial results for these two businesses
will generally be included in our Electric Power Infrastructure Services segment.
On June 22, 2011, we acquired an equity ownership interest of approximately 39% in Howard Midstream
Energy Partners, LLC (HEP) for an initial capital contribution of $35.0 million. HEP is engaged in the business
of owning, operating and constructing midstream plant and pipeline assets in the natural gas and oil industry.
HEP commenced operations in June 2011 with the acquisitions of Texas Pipeline LLC, a pipeline operator in the
Eagle Ford shale region of South Texas, and Bottom Line Services, LLC, a construction services company. Our
investment in HEP is expected to provide strategic growth opportunities in the ongoing development of the Texas
Eagle Ford shale region. We account for this investment using the equity method of accounting.
During the third quarter of 2011, we loaned $4.0 million to the indirect parent of NJ Oak Solar, LLC (NJ
Oak Solar). The loan proceeds, together with NJ Oak Solar’s other financing and equity funds, were used for
their construction of a 10 MW solar power generation facility in New Jersey. The construction of the facility,
which began in the second quarter of 2011, is being performed by us and was substantially complete at the end of
2011.
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