Q: Thoughts about their latest acquisition? It seemed a little bit outside of their core business
5i Research Answer:
The Lexica acqusition is very small, with only 90 consultants, so is not really material. Lexica focuses on healthcare strategy and planning, consulting and cost management. WSP earlier this year outlined its long term plans to add to its planning, property and advisory businesses, so this fits that bill nicely. But to put it into context, WSP has more than 70,000 employees currently. The stock is down on the news, but we do not think the dip is related to the acquisition. Shares are up 8% YTD and 35% over one year.