Key Takeaways
- CBRE IM – CBRE Group acquired New Mountain Capital for $1.2B.
- Sector: Business Services.
- Geography: United States.
Analysis
CBRE Group has agreed to acquire Pearce Services, LLC from New Mountain Capital for approximately $1.2 billion in cash, with an additional contingent payment of up to $115 million tied to 2027 performance. The deal folds Pearce into CBRE’s Building Operations & Experience unit and marks a decisive move to amplify the firm’s capabilities across digital and power infrastructure.
Founded in 1998 and headquartered in Paso Robles, California, Pearce is a specialist provider of design engineering, maintenance and repair services that support uptime for critical facilities. The business serves four primary markets: Critical Power & Cooling Systems (34%), Renewable Energy Generation & Storage (30%), Wireless & Fiber Networks (29%) and EV Charging Networks (7%) of its expected 2025 revenue.
Operational scale is a key part of Pearce’s appeal. The company employs more than 4,000 people across North America and India, combining field technicians, design engineers and quality assurance teams. Management projects Pearce will deliver over $660 million of revenue and north of $90 million of EBITDA in 2026, after a low double-digit compound annual growth rate since 2022.
CBRE’s management highlighted the strategic logic. Bob Sulentic, CBRE’s chair and CEO, said the deal complements the group’s existing footprint in digital and power markets and creates new avenues for growth where demand for technical services is expanding rapidly—driven by cloud expansion, AI workloads and electrification projects.
Pearce’s CEO, Michelle Edler, characterised the combination as a cultural and strategic fit that will accelerate market access and investment into field operations and engineering capabilities. CBRE expects the transaction to be immediately accretive to core EPS and to strengthen its digital and power service offering in data center, wireless and energy asset markets.
From a financial lens, CBRE anticipates the acquisition will help drive more than $350 million of Core EBITDA from its digital and power infrastructure services businesses in 2026 (excluding potential gains from any data-centre land sales). The group also reiterated its balance-sheet target, expecting to finish 2025 with net leverage around 1.1x, at the midpoint of its stated range.
The transaction underlines broader industry dynamics: strategic acquirers and infrastructure-focused buyers continue to invest in specialised operations firms that support data centres, renewable assets and telecom networks. Demand for outsourced technical services has been rising as operators prioritise reliability and speed of deployment; that trend is expected to sustain mid-to-high single-digit to low-double-digit growth in service revenues across the sector.
Advisors on the deal include J.P. Morgan Securities and Wells Fargo for CBRE, with legal counsel from Sullivan & Cromwell LLP. Pearce and its previous owner were advised by Ropes & Gray LLP. The acquisition positions CBRE to capture a larger share of the expanding digital infrastructure services market as cloud, edge and electrification investments gather pace.