05:02 PM EDT, 08/12/2024 (MT Newswires) -- WSP (WSP.TO) on Monday said it agreed to acquire closely held Power Engineers for US$1.78 billion to accelerate a U.S. expansion and position itself as a pure-play consulting firm for the energy transaction.

WSP, an engineering and design consultancy, said the purchase price amounts to multiple of 15.2 times Power's estimated 2024 adjusted EBITDA.

The company said Power, which brings 4,000 employees, will complement the company's core areas; Transport & Infrastructure, Property & Buildings, and Earth & Environment.

"The acquisition will mark a transformative step that will position us at the forefront of the energy transition ... By uniting WSP's extensive global network and POWER's deep technical expertise, we are poised to provide exceptional solutions and service quality to foster significant advancements in the communities we serve," WSP chief executive Alexandre L'Heureux said in a release.

The purchase has been approved by both companies' boards and is expected immediately accretive to WSP's adjusted earnings per share and bring $25 million of cost synergies.

To finance part of the purchase, WSP will raise $500 million through a bought-deal offering of 2.45-million subscription receipts priced at $204.50 each.

It will raise a further $500 million through a private placement of receipts to existing shareholders Caisse de depot et placement du Quebec, GIC Pte. Ltd, British Columbia Investment Management Corp and the Canada Pension Plan Investment Board.

WSP shares closed up $0.40 to $212.39 on the Toronto Stock Exchange.