Global professional services firm WSP has agreed to acquire Power Engineers, a US-based consultancy in the power and energy sector.
The acquisition, valued at $1.78bn, aligns with WSP's strategic vision to expand its services.
Power Engineers, with 4,000 employees including 900 shareholders, has been serving prominent North American power utilities.
The boards of directors of both companies have unanimously approved the acquisition, which is expected to enhance WSP's financial performance and contribute to the objectives of its 2022 to 2024 Global Strategic Action Plan.
To finance the deal, WSP has secured a $500m bought deal public offering of subscription receipts for $204.50 each and $500m in concurrent private placements from GIC, CDPQ, BCI and CPP Investments.
WSP plans to use the net proceeds from the equity financing to partially fund the purchase price, reducing the amounts to be drawn under the new term loans at the acquisition's closing.
The integration of Power Engineers is expected to complement WSP's existing core sectors: transport and infrastructure, property and buildings, and Earth and environment, creating extensive cross-selling opportunities.
Holger Peller, the current president and chief operating officer of Power Engineers, will lead WSP's global plant and equipment platform post-acquisition.
WSP president and CEO Alexandre L’Heureux said: “The acquisition will mark a transformative step that will position us at the forefront of the energy transition.
“This opportunity brings forth a wealth of strategic benefits, including an expanded suite of innovative solutions for our clients and continuous professional growth opportunities for our employees.
“By uniting WSP’s extensive global network and POWER’s deep technical expertise, we are poised to provide exceptional solutions and service quality to foster significant advancements in the communities we serve.
“The trust of our shareholders and our commitment to excellence will empower us to influence the future of the energy sector as we plan to expand our reach and power a sustainable future across the globe.”
