Colliers to acquire leading Western Australian engineering firm

Rhea-AI Summary

Colliers (NASDAQ, TSX: CIGI) has announced that its Engineering & Design Australia division will acquire Pritchard Francis Consulting, a leading Western Australian multi-discipline engineering consulting firm. This strategic move expands Colliers' geographic presence, scale, and service capabilities in Australia. Key points:

• Pritchard Francis, founded in 1977, has 125 professionals providing civil and structural engineering services
• The acquisition aligns with Colliers' goal to become a premier engineering consulting firm in Australia
• Pritchard Francis will rebrand as 'Colliers Engineering & Design' and integrate into Colliers' operations
• Senior leadership of Pritchard Francis will continue to lead the business and become shareholders in Colliers Engineering

The transaction is expected to close by the end of 2024, subject to customary conditions. Financial terms were not disclosed.

Positive

• Expansion of Colliers' engineering services into Western Australia
• Addition of 125 professionals to Colliers' workforce
• Diversification of service offerings in transportation, property, land development, industrial, mining & resources, and public infrastructure
• Strengthening of Colliers' capabilities to serve regional and national clients
• Retention of Pritchard Francis' senior leadership team

Negative

• None.

Insights

Financial Analyst

The acquisition of Pritchard Francis by Colliers Engineering & Design Australia marks a strategic expansion into Western Australia, enhancing Colliers' geographic reach and service capabilities. This move aligns with Colliers' goal to become a premier engineering consulting firm in Australia, following their expansion into New South Wales last year. The addition of 125 professionals from Pritchard Francis will significantly boost Colliers' scale and expertise in civil and structural engineering services.

While financial terms weren't disclosed, the deal structure involving Pritchard Francis' leadership becoming shareholders in Colliers Engineering suggests a retention-focused approach. This partnership model could lead to improved synergies and long-term value creation. For investors, this acquisition represents a positive step in Colliers' growth strategy, potentially leading to increased market share and diversified revenue streams in the Australian engineering sector.

Market Research Analyst

This acquisition strengthens Colliers' position in the Australian engineering consulting market, which has been experiencing steady growth due to increased infrastructure spending and urban development. By expanding into Western Australia, Colliers gains access to the state's booming mining and resources sector, potentially opening up new revenue streams.

The deal also reflects a broader trend of consolidation in the engineering services industry, as larger firms seek to expand their service offerings and geographical presence. For Colliers, this move could lead to improved competitiveness against other major players in the market. Investors should note that while this acquisition enhances Colliers' market position, the success of the integration and the ability to leverage Pritchard Francis' client base will be important factors in determining the long-term value of this deal.

Acquisition expands geographic presence, scale and service capabilities

TORONTO AND PERTH, Sept. 03, 2024 (GLOBE NEWSWIRE) -- Global diversified professional services and investment management company, Colliers (NASDAQ, TSX: CIGI), announced today that Colliers Engineering & Design Australia (“Colliers Engineering”) has entered into a definitive agreement to acquire Pritchard Francis Consulting Pty Limited (“Pritchard Francis”), one of Western Australia’s leading multi-discipline engineering consulting firms.

Pritchard Francis’ senior leadership team will continue to lead the business in Western Australia and become significant shareholders in the Colliers Engineering platform under the unique Colliers partnership model. The business will rebrand as “Colliers Engineering & Design” and fully integrate into Colliers’ rapidly growing engineering operations. The transaction is subject to customary closing conditions and is expected to close by the end of this year. Terms of the transaction were not disclosed.

Founded in 1977, Pritchard Francis’ 125 professionals provide civil and structural engineering, design and related consulting services to diversified end markets including transportation, property, land development, industrial, mining & resources and public infrastructure.

“Following our successful expansion into New South Wales last year, this investment accomplishes another strategic objective in our goal to become one of Australia’s premier engineering consulting firms,” said John Kenny, CEO Ӏ Colliers Asia Pacific. “We are proud of the differentiated business we have built by leveraging the Colliers brand, infrastructure and enterprising culture that allow us to attract the best talent to our organization.”

“We are excited to welcome the well-respected professionals of Pritchard Francis to Colliers,” said Brent Thomas, Managing Director of Colliers Engineering. “The addition of this seasoned group enhances our scale, strengthens our capabilities and expands our geographic reach, allowing us to better meet the requirements of our regional and national clients.”

“Joining Colliers Engineering was a logical next step in our evolution and we are pleased to join a leading global professional services firm that shares our focus on client service excellence, employee experience and equity ownership,” said Arthur Psaltis, CEO, Pritchard Francis. “By integrating our operations with Colliers, we look forward to accelerating the growth of our business and the success of our clients and employees in the years to come.”

Colliers Contacts
John Kenny
Chief Executive Officer | Asia Pacific
+61 2 9257 0222

Brent Thomas
Managing Director | Colliers Engineering & Design Australia
+61 3 9562 7424

Pritchard Francis Contact
Arthur Psaltis
Chief Executive Officer
+08 9382 5111


About Colliers
Colliers (NASDAQ, TSX: CIGI) is a leading diversified professional services and investment management company. With operations in 68 countries, our 22,000 enterprising professionals work collaboratively to provide expert real estate and investment advice to clients. For more than 29 years, our experienced leadership with significant inside ownership has delivered compound annual investment returns of approximately 20% for shareholders. With annual revenues of more than $4.4 billion and $96 billion of assets under management, Colliers maximizes the potential of property and real assets to accelerate the success of our clients, our investors and our people. Learn more at corporate.colliers.com, X @Colliers or LinkedIn.

FAQ

What company is Colliers (CIGI) acquiring in Western Australia?

Colliers is acquiring Pritchard Francis Consulting Pty , a leading multi-discipline engineering consulting firm in Western Australia.

How many employees does Pritchard Francis have?

Pritchard Francis has 125 professionals providing civil and structural engineering, design, and related consulting services.

When is the Colliers (CIGI) acquisition of Pritchard Francis expected to close?

The acquisition is expected to close by the end of 2024, subject to customary closing conditions.

Will Pritchard Francis change its name after the acquisition by Colliers (CIGI)?

Yes, Pritchard Francis will rebrand as 'Colliers Engineering & Design' and fully integrate into Colliers' engineering operations.

What markets does Pritchard Francis serve?

Pritchard Francis serves diversified end markets including transportation, property, land development, industrial, mining & resources, and public infrastructure.