A $4 billion construction company acquired Maryland firm Bowers, in part thanks to its multimillion-dollar data center contracts in the region.
Legence, a San Jose building maintenance and engineering firm that got listed on the Nasdaq in September, announced today its $475 million agreement to purchase the Beltsville company Bowers. Founded in 1984, Bowers works in general construction and plumbing for infrastructure like government agencies, hospitals and data centers, primarily in the DMV.
This deal also means Legence is inheriting Bowers’ backlog of awards and contracts totalling $1.3 billion, according to a press release. Bowers employs about 1,700 workers, who mainly work through labor unions. It is unclear if there will be any personnel changes or layoffs. Legence did not immediately respond to Technical.ly’s request for comment.
“Joining Legence is a tremendous opportunity for our people,” said Bowers CEO Rich Harrington. “With Legence, we believe we are better positioned to reach our full potential as a company and create greater opportunities for our employees.”
Expanding operations in Data Center Alley
Virginia currently houses 666 data centers with many more on the way, and about a third of the infrastructure is in Loudoun County’s “Data Center Alley.”
The data center boom in that region of Northern Virginia can be attributed to tax breaks, proximity to an extensive fiber optic network and previous lenient zoning laws.
“With the addition of Bowers, we are unlocking new opportunities to deliver value for our clients and shareholders in ‘Data Center Alley,’ where they are one of the leading mechanical contractors for data center clients,” said Legence CEO Jeff Sprau. “We believe the combined expertise and expanded capabilities will enable us to drive growth across key end markets at attractive rates of return.”
As the structures continue to be built, data centers have become a flashpoint in the state and the US as the infrastructure continues to guzzle energy. Consumers are receiving higher electric bills and citing noise pollution, and state leaders are reckoning with how to address the rising power demands.
Outside of Bowers’ work in data centers, Legence plans to leverage the acquisition to score work with healthcare facilities and “mission-critical facilities.”
“This acquisition marks an exciting new chapter for Legence,” Sprau said, “and further accelerates our strategy to deliver comprehensive building solutions to more clients in complex and high-growth sectors.”
