Infrastructure engineering and construction firm MasTec Inc (MTZ.US) announced on Tuesday a definitive agreement to acquire electrical contractor The Superior Group for approximately $1.65 billion, a move aimed at bolstering its electrical service capabilities in the rapidly expanding data center infrastructure market.

The transaction, structured as a mix of cash and stock, is anticipated to close in mid-to-late July. The deal terms include roughly $475 million in MasTec stock and approximately $1.175 billion in cash.

The company stated that the acquisition is expected to be immediately accretive to revenue, adjusted EBITDA, earnings per share, and operating cash flow.

Headquartered in Columbus, Ohio, Superior employs about 3,000 people and ranks among the largest electrical contractors in the United States. It specializes in the electrical design, construction, prefabrication, and maintenance services for data centers, healthcare, entertainment, and industrial facilities.

For the full year 2026, Superior is projected to generate revenue between $1.6 billion and $1.7 billion, with adjusted EBITDA expected in the range of $225 million to $250 million.

In a statement, MasTec CEO Jose Mas noted, "Superior expands our capabilities and allows us to capture one of the most attractive infrastructure opportunities in the market today, which is the continued build-out of data centers, power, and mission-critical infrastructure."

Upon completion of the acquisition, Superior will operate as a standalone business under MasTec's Power Delivery segment. Current Chairman and CEO Bryan Stewart and his management team are expected to remain in place.

MasTec has been a significant beneficiary of the surge in data center investment driven by the artificial intelligence (AI) boom. For the first quarter of this year, the company reported a 35% increase in revenue to $3.83 billion, while adjusted earnings per share soared to $1.39, nearly tripling year-over-year.

The company forecasts that for the remainder of 2026 following the deal's closure, Superior will contribute approximately $800 million to $900 million in revenue and between 50 to 65 cents in adjusted earnings per share.