NV5 acquires Herman Cx to enhance commissioning services for hyperscale data centers, boosting earnings and growth opportunities.
Quiver AI Summary
NV5 has announced the acquisition of Herman Cx, a company specializing in commissioning and conformity assessment services for hyperscale data centers. Founded in 2016, Herman Cx supports a range of clients, including U.S. technology and financial services sectors, and co-location data centers. The acquisition, which will contribute positively to NV5's earnings immediately, enhances NV5's capabilities in the data center space and presents opportunities for cross-selling additional services. With over 90 years of combined experience, Herman Cx’s expertise in quality assurance and commissioning services solidifies NV5’s position in the growing market for data center infrastructure, which currently generates over 20% organic growth for the company.
Potential Positives
- The acquisition of Herman Cx expands NV5's capabilities in commissioning services for hyperscale data centers, enhancing its competitive position in a growing market.
- The deal was structured with a combination of cash and stock, indicating financial strategy and stability, and it is expected to be immediately accretive to NV5’s earnings.
- The acquisition aligns with NV5's strategy to generate organic growth, as data centers account for over 20% of the company's revenue growth.
- Cross-selling opportunities resulting from the acquisition can lead to increased revenue streams for NV5’s existing services such as MEP-technology design and fire protection.
Potential Negatives
- Completion of acquisition involves both cash and stock, which could dilute existing shareholders' equity.
- The press release includes numerous forward-looking statements, indicating potential uncertainties in achieving anticipated growth and performance.
- Potential risks outlined, such as demand fluctuations and competitive pressures, may raise concerns about future profitability and stability.
FAQ
What is the recent acquisition by NV5?
NV5 has acquired Herman Cx, a company specializing in commissioning and conformity assessment services for hyperscale data centers.
How does the acquisition benefit NV5?
The acquisition expands NV5's capabilities in commissioning hyperscale data centers, creating cross-selling opportunities and generating recurring revenue.
What services does Herman Cx provide?
Herman Cx provides QA/QC support and commissioning services for mission critical data centers and the power generation infrastructure that supports them.
What industries does NV5 serve?
NV5 serves public and private sectors focusing on utilities, infrastructure engineering, construction quality assurance, environmental health sciences, and more.
How will the acquisition impact NV5's earnings?
The acquisition of Herman Cx will be immediately accretive to NV5's earnings, enhancing their data center business profitability.
Disclaimer: This is an AI-generated summary of a press release distributed by GlobeNewswire. The model used to summarize this release may make mistakes. See the full release here.
$NVEE Insider Trading Activity
$NVEE insiders have traded $NVEE stock on the open market 1 times in the past 6 months. Of those trades, 0 have been purchases and 1 have been sales.
Here’s a breakdown of recent trading of $NVEE stock by insiders over the last 6 months:
- RICHARD TONG (Exec VP and General Counsel) sold 20,000 shares for an estimated $401,670
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$NVEE Hedge Fund Activity
We have seen 115 institutional investors add shares of $NVEE stock to their portfolio, and 76 decrease their positions in their most recent quarter.
Here are some of the largest recent moves:
- CERCANO MANAGEMENT LLC removed 1,159,177 shares (-22.8%) from their portfolio in Q4 2024, for an estimated $21,838,894
- BANK OF NEW YORK MELLON CORP added 1,149,493 shares (+318.2%) to their portfolio in Q4 2024, for an estimated $21,656,448
- EMERALD MUTUAL FUND ADVISERS TRUST removed 510,582 shares (-57.1%) from their portfolio in Q4 2024, for an estimated $9,619,364
- EMERALD ADVISERS, LLC removed 419,985 shares (-37.4%) from their portfolio in Q4 2024, for an estimated $7,912,517
- BLACKROCK, INC. added 369,482 shares (+4.1%) to their portfolio in Q4 2024, for an estimated $6,961,040
- OAK RIDGE INVESTMENTS LLC removed 310,704 shares (-79.2%) from their portfolio in Q4 2024, for an estimated $5,853,663
- FIRST EAGLE INVESTMENT MANAGEMENT, LLC added 276,700 shares (+inf%) to their portfolio in Q4 2024, for an estimated $5,213,028
To track hedge funds' stock portfolios, check out Quiver Quantitative's institutional holdings dashboard.
Full Release
HOLLYWOOD, Fla., March 12, 2025 (GLOBE NEWSWIRE) -- NV5, a provider of technology, certification, and consulting solutions, announced today that it completed the acquisition of Herman Cx, a provider of commissioning and conformity assessment services for hyperscale data centers. Founded in 2016, Herman Cx supports data center infrastructure for U.S. technology companies, the financial services sector, and co-location data centers across the United States. The acquisition was made with a combination of cash and stock and will be immediately accretive to NV5’s earnings.
“The acquisition of Herman Cx is another positive step in the growth of NV5’s domestic data center business, expanding our commissioning capabilities for hyperscale data centers,” said Ben Heraud, CEO of NV5. “Mission critical commissioning provides cross-selling opportunities for our MEP-technology design, fire protection, and power delivery services, and it delivers a recurring revenue stream long after the design and construction of data center facilities.”
The company’s engineers and commissioning authorities deliver design reviews, functional testing, and critical infrastructure testing to verify compliance with the design specifications of data center cooling, power, and safety systems. The company has commissioned hyperscale data center infrastructure up to 175 megawatts and provides all five levels of mission critical testing and commissioning from factory testing of components to interoperability of all data center systems.
“Data centers continue to be a strategic growth driver for NV5, generating over 20% organic growth, and we are excited for the cross-selling opportunities that will come from this acquisition, “said Andrew Chang, Chief Operating Officer of Buildings and Technology at NV5.
About Herman Cx
Headquartered in Arizona, Herman Cx provides QA/QC support and commissioning services for mission critical data centers and the power generation infrastructure to support those facilities. Herman Cx has more than 90 years of employee experience in the mission critical sector and has completed projects in ten countries. The company’s technical experts include engineers, commissioning authorities, and commissioning agents supporting all facets of facility mechanical, electrical, plumbing, and controls systems.
About NV5
NV5 Global, Inc. (NASDAQ: NVEE) is a provider of technology, certification, and consulting solutions for public and private sector clients supporting utility, infrastructure, and building assets and systems. The Company primarily focuses on six business verticals: Utility services, infrastructure engineering, construction quality assurance, buildings & technology, environmental health sciences, and geospatial services. NV5 operates out of more than 100 offices nationwide and abroad. For additional information, please visit the Company’s website at
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Forward-Looking Statements
This press release contains “forward-looking statements” within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. The Company cautions that these statements are qualified by important factors that could cause actual results to differ materially from those reflected by the forward-looking statements contained in this news release. Such factors include: (a) changes in demand from the local and state government and private clients that we serve; (b) general economic conditions, nationally and globally, and their effect on the market for our services; (c) competitive pressures and trends in our industry and our ability to successfully compete with our competitors; (d) changes in laws, regulations, or policies; and (e) the “Risk Factors” set forth in the Company’s most recent SEC filings. All forward-looking statements are based on information available to the Company on the date hereof, and the Company assumes no obligation to update such statements, except as required by law.
Investor Relations Contact
NV5 Global, Inc.
Jack Cochran
Vice President, Marketing & Investor Relations
Tel: +1-954-637-8048
Email:
[email protected]
Source: NV5 Global, Inc.
