NV5 Acquires Red Technologies, Strengthens Data Center and Mission Critical Services in Asia Pacific

Rhea-AI Summary

NV5 Global, Inc. has acquired Red Technologies, a provider of IT and utility infrastructure services for data centers. The acquisition was made with cash and stock and will immediately boost NV5's earnings. Red Technologies' clients include major international technology and financial services companies. The data center market is growing rapidly, especially in the Asia Pacific Region due to the deployment of 5G service and increased reliance on smartphones and cloud services.

Positive

• The acquisition of Red Technologies will be immediately accretive to NV5's earnings.
• Red Technologies' information technology and utility infrastructure services complement NV5's existing MEP design and commissioning services, providing a competitive advantage in the data center market.
• The data center market is experiencing rapid growth, particularly in the Asia Pacific Region, driven by the expansion of cloud services and increased demand for connectivity.

Negative

• None.

HOLLYWOOD, Fla., Aug. 08, 2023 (GLOBE NEWSWIRE) -- NV5 Global, Inc. (the “Company” or “NV5”) (Nasdaq: NVEE), a provider of technology, conformity assessment, and consulting solutions, announced today that it has acquired Red Technologies, a provider of information technology and utility infrastructure services for mission critical data centers. Red Technologies clients include large international technology and financial services companies that depend on data centers and cloud services for their operations. The acquisition was made with a combination of cash and stock and will be immediately accretive to NV5’s earnings.  

“The data center market is experiencing rapid growth, particularly in the Asia Pacific Region, as deployment of 5G service, increased reliance on smartphones, and demand for connectivity drive the expansion of cloud service,” said Dickerson Wright, PE, Chairman & CEO of NV5. “Red Technologies’ information technology and utility infrastructure design and implementation services complement NV5’s existing MEP design and commissioning services to provide a distinct value proposition throughout the entire data center lifecycle and a competitive advantage as we support our data center clients.”

Founded in 2000, Red Technologies operates out of offices in Singapore, Malaysia, and Hong Kong and has deployed projects in Australia, China, India, Japan, Korea, and throughout Southeast Asia. Red Technologies has partnered with NV5 on past and current projects and provides NV5 access to new international clients in the data center market. With the acquisition of Red Technologies, NV5 now has over 250 employees in the Asia Pacific region.

“We are excited to join NV5, and we look forward to the expanded service offering that we can provide to our international data center clients and the growth opportunities that NV5 will provide to our employees across the region,“ said Maurice Baker, Founder and CEO of Red Technologies.

About NV5
NV5 Global, Inc. (NASDAQ: NVEE) is a provider of technology, conformity assessment, 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, testing, inspection & consulting, 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 www.NV5.com. Also visit the Company on Twitter, LinkedIn, Facebook, and Vimeo.

About Red Technologies        
Headquartered in Singapore, Red Technologies has performed specialized design, technical, and maintenance services for major international telecom operators and corporations and subject matter experts. Red Technologies provides a full range of professional services that encompass the entire data center lifecycle including feasibility studies, design, consultancy, construction management, integration, maintenance service support, and facilities asset management.

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: ir@nv5.com

Source: NV5 Global, Inc.

FAQ

What did NV5 Global, Inc. acquire?

NV5 Global, Inc. acquired Red Technologies, a provider of IT and utility infrastructure services for data centers.

How was the acquisition funded?

The acquisition was made with a combination of cash and stock.

What is the impact of the acquisition on NV5's earnings?

The acquisition will be immediately accretive to NV5's earnings.

Who are Red Technologies' clients?

Red Technologies' clients include large international technology and financial services companies.

Why is the data center market experiencing rapid growth?

The data center market is growing rapidly due to the deployment of 5G service, increased reliance on smartphones, and the expansion of cloud services.