Tuesday, August 10, 2010

AECOM to acquire Davis Langdon

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AECOM Technology Corp. has agreed to acquire Davis Langdon, a global cost and project management consultancy firm, in a transaction valued at $324 million.

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Davis Langdon provides cost and project management services, and specialist consultancy services, to clients around the world, with a strong presence in Africa, Australia and New Zealand, Europe, the Middle East, and the U.S. Its counterpart in Asia, Davis Langdon & Seah, will remain independent, but will continue to work with AECOM’s Davis Langdon operations under an existing collaboration agreement.

Under the terms of the agreement, Davis Langdon is expected to receive approximately 80% of the consideration in cash and 20% in AECOM common stock. The transaction is expected to close in October of 2010. The acquisition has been approved by Davis Langdon shareholders and partners, and is subject to customary closing conditions, including necessary regulatory and third party approvals. AECOM expects the transaction to be accretive to cash earnings per share in fiscal year 2011. On a GAAP basis, the transaction is expected to be neutral to EPS in fiscal year 2011.

“Davis Langdon’s strong cost and project management capabilities bolster our growing portfolio of construction management services,” said John M. Dionisio, AECOM president and CEO. “Combined with our recent acquisition of Tishman Construction, we have significantly enhanced AECOM’s ability to meet the growing customer demand for turnkey, integrated services, and we have done so by adding two recognized global leaders in the industry to the AECOM enterprise.”