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ACQUISITIONS (Tables) | 9 Months Ended
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Sep. 30, 2025
Business Combination, Asset Acquisition, Transaction between Entities under Common Control, and Joint Venture Formation [Abstract] |
Schedule of Fair Value Consideration Transferred | Sterling completed the CEC Acquisition for a purchase price of $560,778, net of cash acquired, detailed as follows:
Cash consideration transferred, net of cash acquired | $ | 444,760 |
Equity consideration transferred (285 shares at $278.53 per share(1)) | 79,458
Earn-out (2) | 39,194
Estimated working capital adjustment | (2,633)
Total fair value of consideration | $ | 560,778 |
(1) Sterling’s closing stock price on August 29, 2025. (2) The earn-out arrangement requires the Company to pay up to $80,000 based upon CEC’s achievement of certain operating income targets.
Schedule of Preliminary Purchase Price Allocation | The following table summarizes our preliminary purchase price allocation at the acquisition closing date, net of cash acquired:
Net tangible assets: |
Accounts receivable | $ | 73,549 |
Contract assets | 38,775 |
Other current assets | 25,862 |
Property and equipment, net | 15,363 |
Other non-current assets, net | 26,243 |
Accounts payable | (45,460) |
Contract liabilities | (51,698) |
Current portion of long-term lease obligations | (3,860) |
Other current and non-current liabilities | (49,895) |
Total net tangible assets | 28,879 |
Identifiable intangible assets | 227,700 |
Goodwill | 304,199 |
Total fair value of consideration transferred | $ | 560,778 |
The purchase price allocation for the CEC Acquisition is preliminary. Amounts provisionally assigned to working capital, identifiable intangible assets, and certain other assets and liabilities are subject to change as we complete our valuation procedures. We expect to finalize the allocation as soon as practicable within the measurement period, which will not exceed one year from the acquisition date. Measurement‑period adjustments, if any, will be recorded in the period they are identified and may affect the amounts recognized for assets acquired, liabilities assumed, goodwill, and the intangible amortization in our results of operations.
Schedule of Identifiable Intangible Assets Acquired | The estimated useful lives for intangible assets were determined based upon the remaining useful economic lives of the intangible assets that are expected to contribute directly or indirectly to future cash flows.
| Weighted Average Life (Years) |  | September 1, 2025 Fair Value
Customer relationships | 25 |  | $ | 156,200 |
Trade names | 25 |  | 71,500 |
Total |  |  | $ | 227,700 |
Schedule of Proforma Information | This pro forma financial information has been presented for illustrative purposes only and is not necessarily indicative of the operating results that would have been achieved had the pro forma events taken place on the dates indicated. Further, the pro forma financial information does not purport to project the future operating results of the combined company following the CEC Acquisition.
| Three Months Ended September 30, |  | Nine Months Ended September 30,
| 2025 |  | 2024 |  | 2025 |  | 2024
Pro forma revenue | $ | 752,684 |  |  | $ | 684,971 |  |  | $ | 1,985,517 |  |  | $ | 1,852,060 |
Pro forma net income attributable to Sterling common stockholders | $ | 87,206 |  |  | $ | 62,755 |  |  | $ | 207,187 |  |  | $ | 144,885 |

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