NV5 Acquires ASG Engineering Consultants, Enhances Building Technology Services in Middle East and Asia
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The acquisition of ASG Engineering Consultants by NV5 represents a strategic expansion into the Middle East, an area experiencing significant growth in construction and infrastructure development. From a market perspective, this move allows NV5 to tap into the burgeoning demand for engineering and design services in the region. Notably, the Middle East has seen a rise in mega-projects, including stadiums and hospitality venues, which require the specialized services that ASG provides.
The decision to pay with a mix of cash and stock is a balanced approach to financing the deal, preserving liquidity while sharing future growth potential with ASG's former owners. This method of acquisition can be attractive as it aligns the interests of both companies' stakeholders and can facilitate smoother integration. Moreover, the statement that the acquisition will be immediately accretive to NV5’s earnings is significant as it implies a positive financial impact without a lengthy integration period, which can be a concern for investors in such transactions.
From a financial standpoint, NV5's acquisition of ASG appears to be a calculated move to enhance its earnings and market share. The fact that NV5 has a history of double-digit organic growth in its international business suggests that the company is effectively executing its global expansion strategy. The addition of ASG's capabilities, particularly in structural engineering and compliance services, could enable NV5 to secure larger and more complex projects.
Investors should note that NV5's ability to now serve as the prime consultant on certain design projects, thanks to ASG's Architect of Record certification, potentially opens up new revenue streams. This certification is a key asset as it allows NV5 to bypass previous restrictions and directly engage with clients on prime contracts. The long-term benefits could include increased market share and higher profit margins due to the value-added services they can now offer.
Integrating ASG's expertise into NV5's existing Buildings and Technology design group is expected to enhance the company's competitive edge in the industry. The full-service capabilities now encompassing MEP (mechanical, electrical and plumbing), technology and structural engineering provide NV5 with a comprehensive suite of services that can be offered to clients. This is particularly advantageous in regions like the Middle East and Asia Pacific, where there is a high demand for integrated design solutions for complex projects.
The emphasis on ASG's experience with premier education, hospitality and stadium projects aligns with the current trends in the Middle East's construction sector. These types of projects are often high-profile and require a multidisciplinary approach, which NV5 can now more effectively deliver. The ability to offer a broader range of services not only positions NV5 favorably for securing new contracts but also enhances client retention by becoming a one-stop solution for engineering and design needs.
HOLLYWOOD, Fla., April 03, 2024 (GLOBE NEWSWIRE) -- NV5 Global, Inc. (the “Company” or “NV5”) (Nasdaq: NVEE), a provider of technology, conformity assessment, and consulting solutions, announced today that it has acquired ASG Engineering Consultants (“ASG”), a provider of structural engineering, permitting, and compliance services in Dubai, United Arab Emirates (UAE). ASG’s talented team of engineers, BIM technicians, and technical professionals have delivered engineering design and oversight services for premier education, hospitality, stadium, and commercial structures throughout the Middle East, particularly in Saudi Arabia and the UAE. The acquisition of ASG takes advantage of the booming development in the region and serves as a catalyst for additional organic growth, bringing NV5’s total number of technical professionals in the Middle East to more than 150. The acquisition was made with a combination of cash and stock and will be immediately accretive to NV5’s earnings.
“NV5’s international business has generated double-digit organic growth by strategically targeting high-demand assets such as data centers and mega projects in high-growth regions,” said Dickerson Wright, PE, Executive Chairman of NV5. “ASG’s leadership team and technical experts expand our capabilities and our ability to contract work in the Middle East, and ASG’s expertise will be extended to our Asia Pacific operations to create competitive advantages across all of our international operations.”
NV5’s Buildings and Technology design group has a successful history of teaming with ASG and will benefit from ASG’s structural engineering capabilities. Furthermore, ASG’s Architect of Record certification will allow NV5 to become the prime consultant on design projects that would have been restricted in the past. NV5’s full-service capabilities now include MEP, technology, and structural engineering, and these uniquely comprehensive design solutions will provide a competitive advantage when pursuing projects throughout the Middle East and Asia Pacific, including data center projects.
“Having worked with NV5 for many years, we are excited to join the NV5 team and look forward to the expanded scope of services we can now offer to our clients,” said Derek Astbury, Managing Director of ASG Engineering Consultants.
About ASG Engineering Consultants
Since 2008, ASG has provided structural engineering and architect of record services for some of the most influential facilities throughout the Middle East and in the United Kingdom. In addition to structural engineering design, ASG’s team of experienced resident and structural engineers take site roles for the duration of a project, from verification and submission of all related consultants designs to issuance of building completion certificates. For additional information, please visit www.asgconsultants.com.
About NV5
NV5 Global, Inc. (NASDAQ: NVEE) is a provider of technology, conformity assessment, and consulting solutions for public and private sector clients supporting sustainable infrastructure, utility, and building assets and systems. The Company focuses on multiple verticals: construction quality assurance, infrastructure engineering, utility services, buildings & program management, environmental health sciences, and geospatial technology services to deliver innovative, sustainable solutions to complex issues and improve lives in our communities. NV5 operates out of more than 100 offices nationwide and abroad. For additional information, please visit the Company’s website at www.NV5.com. Also visit the Company on LinkedIn, Twitter, Facebook, and Instagram.
Forward-Looking Statements
This press release contains “forward-looking statements” within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. The Company cautions that these statements are qualified by important factors that could cause actual results to differ materially from those reflected by the forward-looking statements contained in this news release. Such factors include: (a) changes in demand from the local and state government and private clients that we serve; (b) general economic conditions, nationally and globally, and their effect on the market for our services; (c) competitive pressures and trends in our industry and our ability to successfully compete with our competitors; (d) changes in laws, regulations, or policies; and (e) the “Risk Factors” set forth in the Company’s most recent SEC filings. All forward-looking statements are based on information available to the Company on the date hereof, and the Company assumes no obligation to update such statements, except as required by law.
Investor Relations Contact
NV5 Global, Inc.
Jack Cochran
Vice President, Marketing & Investor Relations
Tel: +1-954-637-8048
Email: ir@nv5.com
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