AECOM buys Davis Langdon for US$324 million

Davis Langdon has worked on Abu DHabi's airport. Photo: commons.wikipedia.

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AECOM, the US technical support provider, has bought project consultant Davis Langdon in a US$324 million deal, it was announced yesterday.

The Los Angeles-based firm, whose building consulting arm Maunsell merged with Gulf-based Cansult in 2006, is to take on board the 2,800 employees of the consultant, which operates globally in a number of sectors.

Its counterpart in Asia, Davis Langdon & Seah, will remain independent, but will continue to work with AECOM’s Davis Langdon operations under an existing collaboration agreement.

Davis Langdon, a limited liability company in the UK, offers a number of services including cost management for projects in rail, utilities, hotel, retail and commercial building market, among others. Its previous local projects include the Abu Dhabi International Airport. The company has offices in Dubai, Abu Dhabi and Bahrain.

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“Davis Langdon’s strong cost and project management capabilities bolster our growing portfolio of construction management services,” said John M. Dionisio, AECOM president and CEO.

“Combined with our recent acquisition of Tishman Construction, we have significantly enhanced AECOM’s ability to meet the growing customer demand for turnkey, integrated services – and we have done so by adding two recognised global leaders in the industry to the AECOM enterprise."

“We are delighted to be joining AECOM,” said Rob Smith, Davis Langdon’s international chairman and senior partner of its Europe and Middle East region, adding that clients are seeking integrated services with global knowledge.

“In partnership with AECOM, Davis Langdon will be well-positioned 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 new long-term growth opportunities for our employees. We look forward to further penetrating the markets we share with AECOM and leveraging their global platform to enter new growth markets.”

Davis Langdon is expected to receive approximately 80% of the consideration in cash and 20% in AECOM common stock. The transaction is expected to close in October.

AECOM today announced a rise in net income for the third quarter of the fiscal year of US$65 million (AED238.7 million), up from US$50m from the same period in 2009. Third quarter revenue, net of other direct costs, rose 9% to US$1.1 billion compared with last year.