MasTec Stock (MTZ) Gains on $1.65B Acquisition to Boost Data Center Business

Shares of MasTec (MTZ) rose more than 3% in after-hours trading on Tuesday after the company announced it will acquire electrical contractor Superior Group in a $1.65 billion cash-and-stock deal. The acquisition expands MasTec's presence in the fast-growing data center market as demand for AI projects continues to grow.

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For context, MasTec is a U.S. infrastructure construction company that builds and maintains energy, communications, utility, transportation, and data center projects. Meanwhile, Electrical Specialists, Inc., doing business as The Superior Group, designs, installs, and maintains electrical systems for data centers, industrial facilities, healthcare buildings, and other large commercial projects.

Inside the Deal

MasTec will pay about $475 million in its own stock and $1.175 billion in cash to acquire Superior Group. The deal also includes a potential additional payment if Superior meets certain financial targets over the next three years. Superior's business will operate as a new MasTec division, with its financial results reported under MasTec's Power Delivery segment.

To help finance the acquisition, MasTec secured a new $700 million delayed-draw term loan and expanded its revolving credit facility by $350 million to $2.25 billion. The additional funding strengthens the company's liquidity and supports the cash portion of the Superior Group acquisition.

The acquisition is expected to close in mid-to-late July 2026, pending regulatory approval and other customary closing conditions.

What the Deal Means for MasTec

MasTec has benefited from the AI data center boom as it builds the electrical and infrastructure systems that power these facilities. Growing AI investment has increased demand for its services. The acquisition will further expand MasTec's business in the fast-growing data center market.

MasTec also expects the deal to provide an immediate boost to its revenue and profits. The company said Superior is expected to contribute about $800 million to $900 million in revenue and add 50 cents to 65 cents in adjusted earnings per share (EPS) during the rest of 2026.

Notably, Superior is projected to generate $1.6 billion to $1.7 billion in revenue and $225 million to $250 million in adjusted EBITDA for full-year 2026.

Is MTZ a Good Stock to Buy?

Turning to Wall Street, analysts have a Strong Buy consensus rating on MasTec stock based on 17 Buys assigned in the past three months. The average MTZ stock price target of $480.24 per share implies a 34% upside potential.