IES Holdings agreed to acquire the steel fabrication and services company DBM Global in a $685 million deal.

The electrical and HVAC company said Monday it will be acquiring the company from Innovate with a combination of $545 million in cash and $140 million in IES stock.

The cash consideration includes a $35 million payment to cover Innovate's estimated cost of participating in a joint election under a tax code.

IES plans to fund the deal with cash on hand and an expanded credit facility. The transaction is expected to close in the quarter ending Dec. 31.

DBM is based in Phoenix, and employs about 3,400 people. It generated $1.3 billion in revenue during the 12 months ended March 31.

DBM operates through a family of brands including Schuff Steel, Banker Steel and GrayWolf. It provides engineering and construction services for commercial, industrial and data center companies.

After the deal closes, DBM will operate as a new line of business for IES under its structural business.