Acuren Corporation (NYSE American: TIC) saw its stock price plummet 5.49% in pre-market trading on Thursday following the announcement of a merger with NV5 Global, Inc. and the release of its first-quarter 2025 financial results.

The company revealed plans to merge with NV5 Global in a cash-and-stock deal valued at approximately $1.7 billion. Under the terms of the agreement, NV5 stockholders will receive $23 per share, consisting of $10 in cash and $13 in Acuren common stock. This represents a 32% premium to NV5's 30-day volume-weighted average price. Upon completion of the merger, Acuren stockholders will own 60% of the combined company, while NV5 stockholders will hold the remaining 40%.

Simultaneously, Acuren reported its Q1 2025 financial results, showing revenue of $234.2 million, a 5.0% increase compared to the same period last year. However, the company also posted a net loss of $25.9 million for the quarter. Despite the revenue growth, Acuren's Adjusted EBITDA margin decreased to 11.0% from 15.9% in the prior year period. The company reiterated its 2025 outlook, expecting revenue growth in the low-to-mid-single digit percent range.

The market's negative reaction may be attributed to concerns over the substantial acquisition cost and its potential impact on Acuren's financial position, as well as the reported quarterly loss. Investors might also be cautious about the integration challenges and the effectiveness of the proposed $20 million in cost synergies mentioned in the merger announcement.