AECOM Technology Corporation (NYSE: ACM), a leading provider of professional technical and management support services for government and commercial clients around the world, announced today that it has completed its acquisition of Davis Langdon, a global cost and project management consultancy firm, in Australia and New Zealand, Europe, the Middle East and the United States.
Davis Langdon provides cost and project management services, and specialist consultancy services, to clients around the world. Davis Langdon’s 2,800 employees serve public- and private-sector clients in a variety of markets. Its counterpart in Asia, Davis Langdon & Seah, remains independent, but continues to work with AECOM’s Davis Langdon operations under an existing collaboration agreement.
“Davis Langdon’s strong cost and project management capabilities enhance our growing construction management services portfolio,” said John M. Dionisio, AECOM president and chief executive officer. “Combined with our recent acquisition of Tishman Construction, we have significantly bolstered AECOM’s ability to meet clients’ growing needs for turnkey, integrated services – and we have done so by adding two recognized, global industry leaders to the AECOM team.”
“The addition of Davis Langdon is another example of our continued commitment to execute on our global growth and diversification strategy. Davis Langdon’s presence in growth markets positions us well to offer our clients a comprehensive, worldwide program management solution,” Dionisio said.
The acquisition of Davis Langdon’s South Africa operations is expected to be complete by the end of October 2010. The transactions, including Davis Langdon South Africa, are valued in the aggregate at approximately US$324 million.
AECOM expects the transactions to be accretive to cash earnings per share (EPS) in fiscal year 2011. On a GAAP basis, the transactions are expected to be neutral to EPS in fiscal year 2011.
Davis Langdon has worked on many high-profile projects around the world, including the Tate Modern and the Eden Project in the United Kingdom; Estadio do Dragao in Portugal; New Doha International Airport; Grand Egyptian Museum in Cairo, Egypt; The Clem Jones Tunnel (CLEM7) in Brisbane, Australia; the Transbay Terminal in San Francisco, U.S.A.; the Gautrain Rapid Rail Link in Johannesburg, and the Green Point Stadium – newly built for the 2010 FIFA World Cup – in Cape Town, South Africa.
“We are excited to be joining with AECOM,” said Rob Smith, chairman of Davis Langdon’s international board of directors and senior partner of its Europe and Middle East region. “Our clients are looking for integrated solutions and access to global knowledge. AECOM’s global services platform enables Davis Langdon to deliver our front-end cost and project management, and consultancy services as part of a complete end-to-end offer. This will allow us to better serve our global customers while presenting our employees with new long-term growth opportunities. We look forward to further growing our presence in the markets we share with AECOM and leveraging their global platform to enter new growth areas.”
Under the terms of the agreements, Davis Langdon will receive approximately 82 percent of the consideration in cash and 18 percent in AECOM common stock.
