Infrastructure services group Cardno Limited (ASX:CDD) will pay $4.2 million to acquire a Melbourne-based environmental and geotechnical consulting firm.
Cardno on Thursday announced plans to acquire Lane Piper, which is currently a 40-person outfit. It operates in the south-eastern Australian region, with projects in NSW, ACT, SA and Victoria.
The purchase price will consist of 70% cash and 30% shares, and include a $1 million earn out. The cash component will be funded by Cardno's existing reserves.
Cardno expects the acquisition to contribute around $6.5 million in revenue and $1.2 million in EBIT - and be earnings per share accretive - in FY12.
Cardno managing director Andrew Buckley said the company is pursuing the deal to focus on the environmental consulting market.
“Lane Piper brings further exposure to the environmental market in this region and increases Cardno's geotechnical capability,” he said.
Buckley added that the business will complement Cardno's existing geotechnical and construction materials testing department, Cardno Bowler.
CDD shares hiked 1.25% on Thursday to $4.860.
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