LONDON: WSP Global Inc., a leading professional services firm, has agreed to acquire British engineering and environmental consultancy Ricardo PLC in a deal valued at approximately £281 million ($358 million).
Under the terms of the acquisition, Ricardo shareholders will receive 430 pence per share in cash, representing a 28% premium over Ricardo’s closing price of 335 pence on June 10 and a 69% premium to its 90-day average trading price.
The deal, structured as a scheme of arrangement, is expected to close in the fourth quarter of 2025, pending shareholder and regulatory approvals. Major Ricardo shareholders, including Gresham House Asset Management and Royal London Asset Management, have already pledged support, backing approximately 48% of Ricardo’s shares.
Strategic Rationale
WSP, which operates in over 50 countries with 72,600 employees, said the acquisition will strengthen its expertise in rail transportation, environmental consulting, and energy transition services. Ricardo’s 1,700-employee team brings specialized capabilities in air quality, sustainability, and rail engineering, complementing WSP’s existing operations.
“This acquisition aligns with our 2025-2027 growth strategy,” WSP said in a statement. “Ricardo’s strong U.K., Australian, and Dutch presence will enhance our global footprint.”
Ricardo Board Recommends Deal
Ricardo’s directors unanimously backed the offer after financial advice from Gleacher Shacklock, calling the terms “fair and reasonable.” The company’s leadership, holding about 0.19% of shares, has committed to voting in favor.
Next Steps
- A court meeting and general meeting will be scheduled for shareholder approval.
- Regulatory clearances are required in Australia, Saudi Arabia, the U.K., and the U.S.
- If approved, the deal is set to close by late 2025.
Ricardo, founded over 100 years ago, specializes in sustainable energy and transportation solutions. WSP, listed on the Toronto Stock Exchange, reported 2024 revenue of CAD 16.17 billion ($12.1 billion).
Commenting on the acquisition, Mark Clare, Chair of Ricardo, said: “Ricardo has made significant progress with its strategy to transform the business into a world leading environmental and energy transition consultancy, with its prospects underpinned by global mega trends supportive of long-term growth.
However, while good progress has been made, there are further steps required to complete the transformation which bring some execution risks against the background of short-term market challenges and the uncertain geopolitical and macroeconomic backdrop.
Against this background, WSP has made a compelling offer which represents a highly attractive premium to recent average trading levels and provides certain value in cash today for Ricardo shareholders. Importantly, the Ricardo Directors believe that the Acquisition will provide enhanced career opportunities for Ricardo’s employees within the WSP Group as well as access for our clients to a broader service offering.”