Eight Quarter Advisors Announces Acquisition of Innovative Mechanical & Design by Legence Corp.

Rhea-AI Summary

Legence (Nasdaq: LGN) announced the acquisition of Innovative Mechanical & Design (IMD) on December 2, 2025, with Eight Quarter Advisors serving as sell-side advisor.

IMD, based in Northern Colorado, reported a 70% CAGR over the last four years and serves healthcare, pharmaceutical, higher education, semiconductor, and hyperscaler customers. The deal is described as expanding Legence's installation, service, maintenance, and fabrication capabilities and deepening relationships with Fortune 100 and Nasdaq-100 clients. Legence is backed by Blackstone and positions IMD to scale nationally while retaining its existing operations and client focus.

Positive

• 70% CAGR at IMD over the last four years
• Expands Legence service, maintenance, and fabrication capabilities
• Strengthens relationships with Fortune 100 and Nasdaq-100 clients
• Provides IMD a national platform via Legence/Blackstone backing

Negative

• None.

News Market Reaction

-1.41%

5 alerts

-1.41% News Effect

-$71M Valuation Impact

$4.98B Market Cap

0.3x Rel. Volume

On the day this news was published, LGN declined 1.41%, reflecting a mild negative market reaction. Our momentum scanner triggered 5 alerts that day, indicating moderate trading interest and price volatility. This price movement removed approximately $71M from the company's valuation, bringing the market cap to $4.98B at that time.

Data tracked by StockTitan Argus on the day of publication.

Key Figures

Nasdaq-100 client share: over 60% IMD growth rate: 70% CAGR Growth period: 4 years +1 more

4 metrics

Nasdaq-100 client share over 60% Portion of Nasdaq-100 companies that are Legence clients

IMD growth rate 70% CAGR IMD growth over the last 4 years

Growth period 4 years Period over which IMD achieved 70% CAGR

Fortune 100 relationships Fortune 100 IMD alignment strengthens ties among Fortune 100 companies

Market Reality Check

Price: $49.77 Vol: Volume 748,347 is 0.92x t...

normal vol

$49.77 Last Close

Volume Volume 748,347 is 0.92x the 20-day average 816,378, showing no unusual trading. normal

Technical At $45.80, LGN trades above its 200-day MA $37.01 and 8.76% below its 52-week high.

Peers on Argus

LGN showed a -6.56% move while momentum-screened peers like OFAL, ZDAI, FBGL and...

4 Up

LGN showed a -6.56% move while momentum-screened peers like OFAL, ZDAI, FBGL and FGL were all up between 4.23% and 7.67%, indicating stock-specific dynamics rather than a sector-wide move.

Historical Context

5 past events · Latest: Dec 09 (Neutral)

Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Dec 09	Secondary offering	Neutral	+2.1%	Selling stockholders plan offering of 7M Class A shares; Legence gets no proceeds.
Dec 02	Acquisition announcement	Positive	-1.4%	Acquisition of IMD to expand capabilities and Fortune 100 relationships.
Nov 14	Earnings results	Positive	+20.9%	Record Q3 2025 revenue, EBITDA growth, debt reduction, and 2026 guidance.
Nov 14	Major acquisition	Positive	+20.9%	Agreement to acquire Bowers for ~$475M, adding scale and fabrication capacity.
Oct 31	Earnings schedule	Neutral	+0.1%	Sets Q3 2025 release date and webcast details for November 14, 2025.

Pattern Detected

LGN has mostly traded in line with news, rallying on major earnings and M&A, with one divergence on the IMD acquisition.

Recent Company History

Over the last few months, Legence has combined strong fundamentals with active deal-making. On Nov 14, 2025, Q3 results showed record $708.0M revenue and higher Adjusted EBITDA, alongside guidance of up to $2.85B 2026 revenue. The same day, Legence agreed to acquire Bowers for about $475M, which saw a 20.86% price jump. Earlier, it amended credit facilities and later announced a secondary offering by Blackstone affiliates. The Dec 2, 2025 IMD acquisition produced a modest -1.41% reaction despite its strategic framing.

Market Pulse Summary

This announcement highlights Legence’s strategy of expanding its platform through acquiring high-gro...

Analysis

This announcement highlights Legence’s strategy of expanding its platform through acquiring high-growth specialists. IMD brings a 70% CAGR over four years and strengthens relationships across healthcare, pharma, higher education, semiconductor, and hyperscaler customers, including Fortune 100 and Nasdaq‑100 names. In context of prior deals like Bowers, investors may track integration progress, margin trends, and how acquisitive growth balances against leverage and capital allocation.

Key Terms

mep engineering, mission-critical systems, nasdaq-100 index, cagr, +1 more

5 terms

mep engineering technical

"Legence, a national provider of MEP engineering, consulting, installation"

MEP engineering stands for mechanical, electrical and plumbing engineering, the discipline that designs and coordinates a building’s heating, ventilation, air conditioning, power, water, and waste systems. Think of it as the building’s vital systems—like a body’s heating, wiring and plumbing—whose design affects construction cost, energy bills, safety, regulatory approvals and ongoing maintenance. Investors watch MEP work because it influences project budgets, timelines, operating costs and long‑term asset value.

mission-critical systems technical

"installation, and maintenance services for mission-critical systems"

Systems and technology that a company cannot operate without — the software, hardware, or processes that keep core business functions running, like order processing, payment systems, manufacturing controls, or patient-monitoring equipment. Their reliability directly affects revenue, customer trust and regulatory compliance, so outages or breaches can cause immediate financial loss, legal penalties and lasting reputational damage; investors watch them like a company’s engine or heartbeat when assessing operational risk.

nasdaq-100 index financial

"Legence counts over 60% of the Nasdaq-100 Index among its clientele"

A stock market index made up of the 100 largest non-financial companies listed on the Nasdaq exchange, ranked by the total value of their publicly traded shares. Think of it as a single basket or scoreboard that tracks how a group of prominent, mostly tech- and growth-oriented firms are performing together; investors use it as a benchmark to gauge market trends, build funds or ETFs, and get broad exposure to large-cap Nasdaq-listed stocks.

cagr financial

"IMD was being tested by its own success. 70% CAGR the last 4 years"

Compound Annual Growth Rate (CAGR) measures the average yearly growth of an investment, revenue, or other metric over a multi-year period as if it had grown at a steady rate each year. Think of it like the constant speed that would take you from the starting value to the ending value over the same time—useful because it smooths out ups and downs and lets investors compare different assets or performance periods on an even footing.

hyperscaler technical

"semiconductor, and hyperscaler organizations operating in the region"

A hyperscaler is a very large provider of cloud computing and data-center services that owns and operates vast amounts of servers, storage and network capacity to host other companies’ applications and data. Think of them as the electric utility for digital services: their scale cuts unit costs, enables rapid growth for customers, and creates high barriers to entry, so investors watch their market share, margins and capital spending closely.

AI-generated analysis. Not financial advice.

DENVER, Dec. 2, 2025 /PRNewswire/ -- Eight Quarter Advisors ("EQA"), is pleased to announce its role as the sell-side transaction advisor to Innovative Mechanical & Design, LLC ("IMD") in its acquisition by Blackstone-backed Legence Corp. (Nasdaq: LGN) ("Legence"), a national provider of MEP engineering, consulting, installation, and maintenance services for mission-critical systems. Serving some of the world's most technically demanding sectors, Legence counts over 60% of the Nasdaq-100 Index among its clientele. 

Based in Northern Colorado, IMD has rapidly grown to become one of the preferred installation and service partners to the largest healthcare, pharmaceutical, higher education, semiconductor, and hyperscaler organizations operating in the region. "Legence gives us the resources to grow and the platform to compete at a national level while keeping in place what has made IMD an invaluable partner to our clients," said Josh Fair, founder and president of IMD. 

The alignment with Legence establishes a strategic platform for expansion within the market and further strengthens IMD's service and maintenance offerings, fabrication capabilities, and its relationships among Fortune 100 companies. "IMD was being tested by its own success. 70% CAGR the last 4 years and clients needing more. The challenge of supporting that kind of trajectory is not to be taken lightly. Legence has the presence, culture, and competitive fire to meet that challenge," noted Matt Willimas, managing director at EQA.

"EQA understood our story and showed us the value of bringing that story to the market," further remarked Josh Fair. "They brought the right partners to the table and delivered an outcome that far exceeded our initial expectations."

About Eight Quarter Advisors

Eight Quarter Advisors (EQA), a Denver and Boston-based M&A advisory firm, provides transaction representation to exceptional lower middle-market companies that appeal to the institutional buyer markets, but often do not fit the client profile of traditional middle-market investment banks. The firm was founded to provide a level of knowledge, experience, and transaction sophistication that is rarely accessible to a market that stands to benefit from it most.

For more information about this acquisition or Eight Quarter Advisors visit EightQuarterAdvisors.com

Note: This press release is for informational purposes only and does not constitute an offer or solicitation to sell shares or securities.

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SOURCE Eight Quarter Advisors

FAQ

What did Legence (LGN) acquire on December 2, 2025?

Legence acquired Innovative Mechanical & Design (IMD), with Eight Quarter Advisors as sell-side advisor.

How fast did IMD grow before the acquisition by Legence (LGN)?

IMD reported a 70% compound annual growth rate over the last four years.

What services does Legence (LGN) gain from buying IMD?

Legence expands its MEP installation, service, maintenance, and fabrication capabilities.

Which customer sectors does IMD serve that benefit Legence (LGN)?

IMD serves healthcare, pharmaceutical, higher education, semiconductor, and hyperscaler organizations.

Will the IMD team remain in place after the Legence (LGN) acquisition?

The announcement states IMD will keep in place what made it valuable to clients while scaling nationally under Legence.

Who advised IMD on the sale to Legence (LGN)?

Eight Quarter Advisors acted as the sell-side transaction advisor to IMD.