In a bold cross-continental power play, WSP Global Inc., the Canadian engineering juggernaut, announced Wednesday it will acquire British technology consultancy Ricardo PLC for £281 million ($379 million)—a strategic takeover that not only reshapes the global consulting landscape but also diffuses a mounting shareholder storm.
The deal—engineered with legal finesse by Linklaters LLP for WSP and Ashurst LLP for Ricardo—unfolds amid mounting tensions stirred by activist investor Science Group PLC, which has been agitating for boardroom change and questioning Ricardo’s recent trajectory.
A Strategic Takeover with High Stakes
WSP, listed on the Toronto Stock Exchange, is set to scoop up nearly 20% of Ricardo shares directly from Science Group at 430 pence per share, totaling £53.5 million. The rest of the shares will be acquired via a court-sanctioned scheme of arrangement—a maneuver designed to secure full control while navigating legal intricacies.
The 430 pence offer represents a 28% premium over Ricardo’s Tuesday closing price, sweetening the deal for investors weary from strategic uncertainty.
“WSP has made a compelling offer,” said Ricardo Chairman Mark Clare, adding that it provides “certain value in cash today” and reduces strategic risk as the company aims to become a top-tier player in environmental and energy transition consulting.
