Acuren Corporation (TIC) shares surged 8.89% in pre-market trading on Thursday following the announcement of a major merger deal with NV5 Global, Inc. (NVEE). The $1.7 billion cash-and-stock transaction is set to create a global powerhouse in the Testing, Inspection, Certification, and Compliance (TICC) and engineering sectors.

Under the terms of the agreement, NV5 stockholders will receive $23 per share, consisting of $10 in cash and $13 in Acuren common shares. This offer represents a significant 32% premium to NV5's 30-day volume-weighted average price as of May 14, 2025. Upon completion of the merger, Acuren shareholders will own 60% of the combined company, while NV5 shareholders will hold the remaining 40%.

The merger is expected to be immediately accretive to Acuren, with potential for further value creation through an estimated $20 million in near-term cost synergies and long-term revenue synergy opportunities. Tal Pizzey, CEO of Acuren, stated, "This merger is a strategic move to expand and complement the business lines of both companies, offering significant value to our stockholders." The combined entity is projected to have approximately $2 billion in annual revenue, positioning it as a leading player in the global TICC and engineering services market.

The merger agreement includes a 60-day "go-shop" period for NV5, allowing it to solicit alternative acquisition proposals. The transaction is expected to close in the second half of 2025, subject to approval by stockholders and regulatory bodies. Acuren will fund the cash portion of the acquisition through a fully committed $850 million term loan facility and cash on hand.

This merger announcement comes on the same day Acuren reported its Q1 2025 results, with revenue increasing 5% year-over-year to $234.2 million. The company also reiterated its 2025 revenue growth outlook in the low-to-mid-single digit percent range, demonstrating confidence in its business trajectory amidst this transformative deal.