Engineering giant SNC Lavalin has said it has become a ‘true global player’ with the takeover of Atkins.
In April it was reported that the firms had agreed a £20.80 per share deal, representing a total of $3.6 billion, and now the acquisition has been confirmed.
The company said the deal will increase its geographic reach and strengthen its position in the rail and transit markets, as well as in nuclear, renewables and infrastructure.
Headquartered in the UK, Atkins is also a multinational engineering firm with 18,000 employees based in the UK, USA, Middle East, Scandinavia and Asia.
The two combined companies will employ more than 50,000 employees with an annual revenue of C$12 billion, of which Atkins will contribute C$3.5 billion.
The integration of the two organisations will take place over the next few months with around C$120 million of cost synergies expected, C$30 million from SNC Lavalin and C$90 million from Atkins.
SNC Lavalin said that savings would come from back-office functions, shared services, streamlined IT systems and real estate consolidation.
SNC Lavalin CEO Neil Bruce said: “SNC Lavalin is continuing to deliver on its strategy of establishing itself in the top three in our industry globally.
“By combining our two highly complementary businesses, we are solidifying SNC Lavalin’s position as one of the largest fully integrated professional services firms in the world, while improving our margins and balancing our business portfolio.
“We are now a true global player that is in a stronger position to offer clients complementary and a wider breadth of expertise, capabilities and services.
“Together, we will become part of a larger global organisation that will open the door to new opportunities for further growth and development.”
The acquisition became effective on July 3 following a vote by Atkins’ shareholders on June 26 and approval by the High Court of Justice in England and Wales on June 29.
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