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Tetra Tech Closes Acquisition of UK Consultancy RPS Group
Tuesday 24 January 2023

US-based consulting and engineering services provider Tetra Tech, Inc. (NASDAQ: TTEK) has closed the acquisition of UK-based technology enabled consultancy RPS Group plc in an all-cash transaction, the company said.

The acquisition advances Tetra Tech's Global High-End Consultancy in Water, Environment, and Sustainable Infrastructure.

The acquisition has been unanimously recommended by the board of directors of RPS Group.

The combined 26,000 associates of the RPS Group and Tetra Tech will establish a premier global consultancy in water, environment, sustainable infrastructure, and energy transformation.

The RPS Group employs 5,000 associates in Europe, the United Kingdom, Asia Pacific, and North America, delivering high-end solutions especially in energy transformation, water, and programme management for government and commercial clients.

It is intended that the acquisition will be implemented by means of a Court-sanctioned scheme of arrangement under Part 26 of the UK Companies Act 2006.

The purpose of the Scheme is to provide for Tetra Tech to indirectly become the owner of the entire issued and to be issued share capital of RPS Group.

The acquisition is expected to be mid to high teen percent accretive to adjusted earnings per share after realising the full benefit from an expected GBP 21m in cost synergies and integration into Tetra Tech.

The cost to realise these synergies is estimated to be GBP 16m and would be substantially incurred in first twelve months after closing. Adjusted EPS excludes one-time transaction related costs and intangible amortisation.

BofA Securities is acting as financial advisor to Tetra Tech on the acquisition. Legal advice is being provided to Tetra Tech by Hogan Lovells International LLP.

RPS Group is an established technology enabled consultancy that operates across a range of sectors. RPS Group provides specialist services to government and private sector clients with a focus on front-end consulting.

Tetra Tech is a provider of high-end consulting and engineering services for projects worldwide.

With 21,000 associates working together, Tetra Tech provides clear solutions to complex problems in water, environment, sustainable infrastructure, renewable energy, and international development.
Date Published: 24/01/2023