Arcadis is to buy Hyder Consulting in a £256.2m deal agreed by the boards of both companies.
Arcadis will acquire the share capital of Hyder at a price that represents a premium of approximately 38.5% on Wednesday’s closing price of £4.69 per Hyder share.
The Arcadis directors believe there is a compelling strategic rationale for the acquisition, seeing the addition of Hyder’s design and engineering capabilities as strengthening presence in specific geographies and in market sectors such as infrastructure, buildings, water and natural resources. Arcadis said that the acquisition will enable it to establish a footprint in new target markets sooner than previously anticipated.
Arcadis chief executive officer Neil McArthur said: “Hyder is a unique company with a long history of being involved in the leading edge of design and engineering. Through the transaction we see an excellent opportunity to better serve our clients by further deepening our capabilities in global design and engineering in growth markets whilst creating exciting career opportunities afforded by a stronger global growth platform for staff in both companies. The transaction will create value for Arcadis shareholders by accelerating our sustainable growth strategy and through the synergy opportunities that arise from the combination.”
Hyder chief executive Ivor Catto said: “Arcadis’ recommended cash offer announced today represents a significant premium to Hyder’s current share price. Although the Board believes that Hyder has a strong future as an independent business, it considers that this cash offer substantially recognises Hyder’s growth prospects, and provides certainty, in cash, to our shareholders today. The resultant group should also provide further opportunities for our highly valued clients and staff.”