Arcadis and IBI have entered into an agreement on a recommended, all-cash offer of C$19.50 per share for Arcadis to acquire IBI Group.
The C$873m (€664m) purchase price represents a 30% premium on IBI’s share price at the close of last week and 40% on its past month average.
The proposal is unanimously supported by IBI Group’s board of directors and its largest shareholder, the IBI Group Management Partnership.
The transaction is expected to be completed in the second half of 2022.
Arcadis chief executive Peter Oosterveer said: “The acquisition of IBI Group marks a significant milestone in the implementation of Arcadis’ business strategy. Together with IBI Group’s management team, we have big ambitions. Our shared vision to digitally transform our industries and provide clients with new and innovative technology enabled solutions differentiates us amongst our peers. Today’s announcement will help accelerate this vision, leveraging Arcadis’ global platform and IBI Group’s strong track record by creating a strong fourth global business area (GBA) “Intelligence”, complementing the services and solutions we offer to clients through our three existing GBAs (Resilience, Places, Mobility).”
He continued: “IBI Group is a superb business with a rich history, a highly talented team and a strong cultural fit with Arcadis. We warmly welcome IBI Group’s 3,500+ employees to the Arcadis family. By combining our talents and expertise, I am confident we will strengthen our role as a digital leader in our industry and simultaneously grow and enhance our geographical footprint.”
Arcadis in the UK includes the legacy businesses of EC Harris and Hyder Consulting. IBI also has offices in the UK – in Brighton, London, Birmingham and Manchester – and a client base that includes National Highways and Peel Group. It generated global revenues of C$444m last year (with 50% from buildings, 32% from infrastructure and 18% from ‘intelligence’), generating adjusted Ebitda of C$68m.
IBI Group chief executive Scott Stewart added: “The combination of IBI Group and Arcadis will accelerate our ability to define the cities of tomorrow. Arcadis has a stellar reputation developing solutions for major societal issues from climate change to urbanization. Bringing our talent and expertise together will allow us to bring IBI Group’s strategy to life in a way that will drive an even greater impact for our clients and people.
“As a combined force, we will seed IBI Group’s Intelligence sector and technology initiatives across Arcadis’ broad global footprint. We will establish the leading and most diverse architectural firm in North America and potentially the world. In addition, we will expand IBI Group’s capabilities and depth in infrastructure and environmental services, amplifying our ability to support our clients’ missions for sustainable cities and communities.”