10:53 AM EDT, 06/03/2024 (MT Newswires) -- Global diversified professional services and investment management company, Colliers on Monday entered into a definitive agreement to acquire Englobe Corporation, a Canadian multi-discipline engineering, environmental and inspection services firm.

A statement noted Englobe's senior leadership team and employee shareholders will remain shareholders in the business under Colliers' partnership model. In 2023, the statement also noted, the business generated US$340 million of revenues. The business will be rebranded as Colliers in 2025.

Under the terms of the transaction, Colliers will buy a "significant" controlling interest for approximately US$475 million in cash payable at closing. Englobe's material management and beneficial reuse operations located in the UK, France and Canada are not included in the transaction. The transaction is subject to customary closing conditions and is expected to close in the third quarter of 2024.

Meanwhile, National Bank on Monday said it has a "Sector Perform" rating and a price target of US$125 on Colliers.

"Bottom line - anything of size carries a premium multiple in engineering; strategically, a positive overture," the analysts said. It noted CIGI is establishing a platform in Canada instead of going piece-meal. The bank prefers the former as it implies deeper expertise, client relationships, size of projects, diversity and systems in place."

Price: 153.27, Change: +0.44, Percent Change: +0.29