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International built asset consultancy EC Harris, announced on Monday that it had signed a merger agreement with Arcadis, the Dutch professional services company.
The merger will see the combined company grow to almost 19,000 people, with combined revenues of $3.1bn. The new entity will become a top five global leader in strategic built asset advisory and project delivery services.
The Middle East alone will have close to 6,000 staff, while there will be considerable strength in Europe, the US and Brazil.
“This deal will accelerate our vision and plans for growth and will enable us to deliver our client’s goals as well as our own,” said Philip Youell, chief executive of EC Harris.
“Whilst we have been successful in winning some very large programmes of work and have many more in the pipeline, the demand from our clients is such that we recognised that we needed to grow and develop internationally, at a much faster rate than we are currently doing,” he explained.
As a result, when the Arcadis offer came in, Youell said that it was the only one that fit culturally and strategically with the consultancy’s stated goals.
“We now have the strength and intention to invest and develop a leading global built asset consultancy position,” he added.
Harrie Noy, Arcadis CEO, said that the merger was a major step forward in realising its own strategic ambitions.
“With EC Harris we get a leading position in project management and related services while their built asset consultancy approach fits perfectly with our goal of expanding our services at the high end of the value chain.”
Under the terms of the deal, ARCADIS will take full ownership of EC Harris in return for three million shares and an undisclosed cash sum.
The merger is contingent on EC Harris partner approval and related closing requirements. It is anticipated to be completed by November 2011.
An EC Harris spokesperson told Construction Week Online that there would be a 12 to 18 month integration process between the two companies.
The source, who declined to be identified, added that one of the key attractions for Arcadis was EC Harris’s strength in the Middle East.
“EC Harris will take a leading role in the Middle East, so operations will remain as they are,” he said, adding that there were no major changes in the pipeline.
Noy added that the expansion of Arcadis’s footprint into the Middle East and Asia would allow the services company to capitalise on the growth opportunities in those markets.
EC Harris will continue to operate as a partnership, with a company-wide remit within Arcadis, Noy said, taking up a leadership role in the global building business line and driving the development of the Programme and Project Management services.
“There are currently no plans for EC Harris to be rebranded. If it is right for our clients and our company in the future, this may change, but there are no immediate plans,” the EC Harris spokesperson in Dubai added.
He said that the deal would see no redundancies, while the consultancy’s leadership team will remain in place, with Philip Youell continuing as chief executive and joining the Arcadis senior management committee.
EC Harris’s current chairman, Richard Clare, will take on a wider strategic client development role in Arcadis, while remaining on the EC Harris board in an advisory capacity.
