IES Holdings, Inc. has announced a definitive agreement to acquire DBM Global from INNOVATE Corp. for approximately $650 million in combined cash and stock, with total consideration reaching $685 million including minority interest buyouts and tax election payments. IES Holdings reported stellar fiscal Q3 2026 results, with revenue surging 40% year-over-year to $1.24 billion and net income nearly doubling to $153.0 million, while ending the quarter debt-free with $77.3 million in cash and $310.6 million in marketable securities. The company's backlog reached a record $4.5 billion, and its board authorized a two-for-one stock split. INNOVATE Corp.'s Q2 2026 results showed consolidated revenue climbing 74.2% to $421.6 million, but DBM Global accounted for $414.0 million of that revenue and $48.7 million of total Adjusted EBITDA, highlighting its dependence on the unit being sold. The $545 million cash proceeds from the sale will allow INNOVATE to de-lever its balance sheet, but its remaining operations, Spectrum and Life Sciences, remain unprofitable or cash-starved. Hedge fund data shows stronger conviction in IES Holdings, with ownership increasing from 34 to 39 funds, while INNOVATE saw a rise from five to eight funds.
IES Holdings IncAnnounces acquisition of DBM Global, strong Q3 results, and stock split.
Innovate CorpSells DBM Global for $545M cash, enabling debt reduction.
DBM Global IncAcquired by IES Holdings for $650M, providing liquidity and valuation.