Q: Could you please comment on the acquisition announced by WSP Global of Ricardo, UK for a total price over $500 mln.
For now, it appears that Co has also secured a Loan to finance the deal, but would you rule out an equity offer, in the near term ?
Thank You
For now, it appears that Co has also secured a Loan to finance the deal, but would you rule out an equity offer, in the near term ?
Thank You
5i Research Answer:
The deal looks fairly standard for WSP, adding 2,700 consultants in some high growth areas. However, it is not overly material, considering WSP's $35 billion market valuation. Price looks reasonable. WSP has more than $400M cash on hand, and we would not expect this acquisition in and of itself to result in an equity issue. But...the stock is up 32% in a year and the company does like acquisitions, so we would still never rule out a deal in such instances.