Acuity Brands has announced its agreement to acquire QSC, an audio, video, and control platform, for approximately $1.22 billion as part of its strategy to expand its footprint in the intelligent spaces industry. With a diverse range of applications spanning various sectors including education, commercial, hospitality, government, healthcare, and transportation, the QSC platform aims to enhance the operational capabilities within these environments.
Headquartered in Costa Mesa, California, QSC reports an impressive sales revenue of about $535 million for the twelve months ending August 31. Neil Ashe, Chief Executive of Acuity, expressed that this acquisition aligns with the company's vision of promoting data interoperability, thereby enhancing the intelligence of spaces in a way that prioritizes safety and sustainability.
Acuity is well-known for its innovative lighting and building management solutions that integrate well into modern infrastructure. In a parallel statement, the CEO of QSC, Joe Pham, highlighted that merging their capabilities with Acuity will amplify the crucial role that audio and video technology play in live, hybrid, and virtual experiences.
This partnership is expected to enhance customer engagement and experience across the board. To facilitate this acquisition, Acuity plans to leverage $600 million of term-loan financing alongside their available cash reserves. The transaction is scheduled to close in the second quarter of Acuity's fiscal year 2025, with expectations for it to positively impact their adjusted per-share earnings for that year. Earlier this month, Acuity Brands reported fourth-quarter financial results that surpassed market expectations, fueled by robust double-digit growth in its intelligent spaces segment.
The company anticipates that the adjusted earnings per share (EPS) for 2025 will range between $16 and $17.50, based on projected sales between $3.9 billion and $4.1 billion. Analysts from Capital IQ forecast a normalized EPS of $16.82 on estimated revenues of $4.01 billion. As of the latest update, Acuity's stock price stands at $296.71, reflecting a modest increase of 0.10%..