Quanta Services Sells Fiber Optic Licensing Operations to Crown Castle International for $1 Billion

Quanta Services, Inc. announced today that it has closed the sale of its fiber optic licensing operations to Crown Castle International Corp. for approximately $1 billion in cash, resulting in approximately $830 million in after-tax net proceeds.

Quanta will discuss the priorities for the use of proceeds from the transaction on its second quarter 2015 earnings conference call tomorrow morning.

"This transaction unlocked the substantial value in our fiber optic licensing operations and enables us to enhance our strategic focus on energy infrastructure markets, which we believe will undergo substantial development in the coming years," said Jim O'Neil, president and chief executive officer of Quanta Services. "We again want to thank our former fiber optic licensing operations employees for their contributions to our organization and wish them well in their future as part of Crown Castle."

As a result of closing the transaction, Quanta expects to record an estimated net after-tax gain of approximately $175 million, or approximately $0.84 per diluted share, in the third quarter of 2015.