WSP Global has announced that it has reached an agreement to acquire global consultancy group Ricardo. The deal for the British-based company is worth approximately £363.1m.
WSP has agreed to purchase the entire issued and to be issued share capital of Ricardo along with the 19.9% stake in the business held by Science Group. WSP expects to complete the acquisition by the end of the year.
Ricardo employs around 2700 people in 20 countries and is active in the rail sector in markets all over the world, offering expertise in independent assurance, systems engineering, operations and maintenance, and clean energy solutions. Clients include Alstom, Siemens, and CRRC, along with major railways, transit authorities and research groups. It is listed on the London Stock Exchange.
WSP describes the acquisition as an “excellent opportunity” to progress its 2025-2027 Global Strategic Action Plan and to accelerate expansion in targeted high-growth areas. WSP says that Ricardo has been reorienting its business in recent years to become a leading strategic and engineering consultancy focusing on rail and mass transit along with environmental and energy consultancy and advisory services.
It also confirmed that Ricardo will continue to pursue a strategic review of its automotive and industrial performance products business segments, which is likely to result in a sale of both units.
“The proposed acquisition of Ricardo perfectly aligns with WSP’s vision for sustainable, compounding growth and our clear ambitions to expand in advisory, energy transition, water solutions and the rail sector over the next three years,” says Alexandre L’Heureux, president and CEO of WSP.
“We are poised to enhance our ability to deliver innovative solutions as we combine our global reach and resources with Ricardo’s complementary expertise.
Ricardo was incorporated in 1915. It subsequently developed expertise in locomotive and multiple-unit power-train and drive-line systems. It expanded its presence in the rail sector by purchasing Lloyd’s Register Rail for £42.5m in 2015.
