Arcadis acquires IBI Group for £563m
The two international design consultancies will combine in a deal that is expected to complete later this year.
Arcadis has made an all-cash offer of CA$19.50 per share for all issued and outstanding shares of IBI Group, equating to CA$873m – roughly £563m. That price tag is more than 11 times IBI’s 2022 estimated earnings before interest, taxes, depreciation and amortisation.
The CA$19.50 share price offer is also 30% higher than IBI’s closing share price on Friday, 15 July.
“The acquisition of IBI Group marks a significant milestone in the implementation of Arcadis’ business strategy,” said Peter Oosterveer, chief executive of Arcadis.
“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,” he continued.
“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 ‘Intelligence’, complementing the services and solutions we offer to clients through our three existing GBAs (Resilience, Places, Mobility).”
Scott Stewart, chief executive of IBI echoed Oosterveer’s sentiments.
“The combination of IBI Group and Arcadis will accelerate our ability to define the cities of tomorrow,” Stewart said.
“As a combined force, we will seed IBI Group’s Intelligence sector and technology initiatives across Arcadis’ broad global footprint,” he continued. “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.”
Within three years, Arcadis estimates it will see annual savings of CA$15m a year in operating costs. The company also expects “more substantial” increase in revenue.
Goldman Sachs acted as financial advisor to Arcadis, while Strikeman Elliott provided legal counsel. Financing for the deal was provided by Goldman Sachs and Bank of America.
National Bank Financial advised IBI, with both Blake, Cassles & Graydon and Bennett Jones acting as legal counsel.
Arcadis has 29,000 employees in more than 70 countries. It generates nearly £3bn in revenue.
IBI has more than 60 offices across the world and employees 3,500. It generates revenues of more than £285m.
Both Arcadis and IBI are active in the North West. IBI recently opened its 6,600 sq ft office at the Dantzic Building in Manchester. Meanwhile, Arcadis has offices in Manchester, Warrington, and Cumbrian village Moor Row.
