Acuren Corp. (TIC) shares plummeted 5.49% in pre-market trading on Thursday, despite the company announcing a merger with NV5 Global, Inc. and reporting its first-quarter 2025 results. The significant drop in share price suggests that investors may have concerns about the terms of the merger or its potential impact on Acuren's future prospects.

The company announced that it has entered into a definitive agreement to merge with NV5 Global in a cash-and-stock deal valued at approximately $1.7 billion. Under the terms of the agreement, NV5 stockholders will receive $23 per share, consisting of $10 in cash and $13 in Acuren common stock. This represents a 32% premium to NV5's 30-day volume-weighted average price as of May 14, 2025. Upon completion of the merger, Acuren stockholders will own 60% of the combined company, while NV5 stockholders will own the remaining 40%.

Simultaneously, Acuren reported its first-quarter 2025 results, with revenue increasing by 5.0% to $234.2 million. The company also reiterated its 2025 revenue growth outlook, expecting growth in the low-to-mid-single digit percentage range compared to the previous year. However, Acuren reported a net loss of $25.9 million for the quarter, which included increased depreciation and amortization related to the ASP Acuren Acquisition, a valuation allowance on a deferred tax asset, and planned public company and business transformation costs.

While the merger is expected to create a global powerhouse in the Testing, Inspection, Certification, and Compliance (TICC) and engineering sectors, with combined revenues of approximately $2 billion, the market's negative reaction suggests that investors may be concerned about the financial implications of the deal or potential integration challenges. The sharp decline in Acuren's stock price indicates that the market may need more time to fully assess the long-term value proposition of this strategic move.