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AMERCERS & ACQUISITIONS
THE PASTYEAR HAS SEEN AN UPTICK IN A/E MoA ACTIVITY. WE LOOK ATTHREE TRANSACTIONS TO LEARN WHAT MOTIVATED EACH SIDE TO AGREE TO A UNION.
NOW THAT THE LONG, troubling recession is winding down- or so the experts say- consolidation in the A/E industry is heating up.
Fueled in part by the economic downturn, the pace of mergers and acquisitions (M&A) accelerated in the past year as large, multidisciplinary firms cherry-picked small, medium, and even big firms at advantageous prices. Eager to fill in geographic gaps in their service coverage, enter new markets, and deepen expertise in various sectors, these firms are taking advantage of an industry in flux and the many victims of the recession who are uncertain about their firms' future prospects. "It has been a rough two years for many architecture firms, so everything is on the table now, from considering mergers to acquisitions and closely evaluating a firm's strategic goals," says Steve Gido, a principal at A/E consultancy Rusk O'Brien Gido + Partners.
Indeed, deals have been popping up everywhere. And three of them, in particular, reflected the broader forces reshaping the industry.
RTKL Associates bolstered its presence in China by adding AHS International, a prominent healthcare design firm in Beijing. Seattle-based NBBJ, a multioffice firm that previously had grown organically, went outside the box and acquired Chan Krieger Sieniewicz (CKS), a highly regarded Boston boutique. And Canada's Stantec, already one of the world's largest design and engineering firms, continued an aggressive acquisition strategy by taking over the 6oo-person staff at Burt Hill, adding that firm's 13 offices in the U.S. and abroad. Terms of the deals, which were structured as mergers or asset and stock buyouts, have not been disclosed.
Besides the slack economy, which made financing cheaper for those on the prowl and softened the hearts of some initially unwilling brides, a number of other factors have helped propel the buying binge.
One is expanding global markets, especially...