QUANTA SERVICES INC, QUANTA SERVICES MANAGEMENT ...

QUANTA SERVICES, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
4. ACQUISITIONS:
2011 Acquisitions
On October 5, 2011, Quanta 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
Quanta 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 Quanta’s consolidated
financial statements beginning on such date. This acquisition enables Quanta to further enhance its Electric
Power Infrastructure Services segment offerings. Utilimap’s financial results will generally be included in
Quanta’s Electric Power Infrastructure Services segment.
On August 11, 2011, Quanta 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 Quanta 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 the consolidated financial statements beginning on such date. This acquisition allows Quanta to
further expand its capabilities and scope of services internationally. Coe’s financial results will generally be
included in Quanta’s Natural Gas and Pipeline Infrastructure Services segment.
On August 5, 2011, Quanta 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 Quanta
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 the consolidated
financial statements beginning on such date. This acquisition allows Quanta to further expand its capabilities and
scope of services in Canada. McGregor’s financial results will generally be included in Quanta’s Electric Power
Infrastructure Services segment.
In the third quarter of 2011, Quanta acquired two businesses based in British Columbia, Canada that
predominantly provide electric power infrastructure services, which have been reflected in Quanta’s consolidated
financial statements as of their respective acquisition dates. In connection with these acquisitions, Quanta 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 Quanta common stock valued at approximately $1.7 million. These acquisitions allow Quanta
to further expand its capabilities and scope of services in Canada. The financial results of these two businesses
will generally be included in Quanta’s Electric Power Infrastructure Services segment.
2010 Acquisition
On October 25, 2010, Quanta acquired Valard. In connection with the acquisition, Quanta paid the former
owners of Valard approximately $118.9 million in cash and issued 623,720 shares of Quanta common stock
and 3,909,110 exchangeable shares of a Canadian subsidiary of Quanta. In addition, Quanta issued one share of
Quanta Series F preferred stock to a voting trust on behalf of the holders of the exchangeable shares. The Series F
preferred stock provides the holders of exchangeable shares with voting rights in Quanta common stock
equivalent to the number of exchangeable shares outstanding at any time. The aggregate value of the common
stock and exchangeable shares issued was approximately $83.4 million. The exchangeable shares are
substantially equivalent to, and exchangeable on a one-for-one basis for, Quanta common stock. As part of the
consideration paid for Valard, Quanta also repaid $12.8 million in Valard debt at the closing of the acquisition.
As this transaction was effective October 25, 2010, the results of Valard have been included in the consolidated
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