Tetra Tech to buy WYG in £43m deal
AIM-listed WYG, which delivers consulting and engineering, has agreed to be bought by Tetra Tech in a £43.4m deal.
Under the terms of the transactions, Tetra Tech will pay 55p a share in cash for WYG, which is a 244% premium to the closing price on Friday.
WYG said the combination of the two will represent a "premier" international consulting, engineering and programme management firm, and will leave the group well-positioned to provide a strong platform to drive long-term growth within the broader combined group.
Jeremy Beeton, non-executive chairman of WYG, said: "The WYG board and I unanimously recommend the offer from Tetra Tech. Becoming part of the Tetra Tech Group enables benefits of scale and access to expertise across highly complementary geographies and client relationships, and brings operational infrastructure and financial strength to support WYG's long term growth ambitions.
"We provide Tetra Tech with a strong platform for investing in growth in the UK and Europe. We believe the combination of our two companies will provide greater opportunities for our people and clients, as well as offering certainty of immediate value to our shareholders at a considerable premium to the prevailing share price."
Tetra Tech chairman and chief executive Dan Batrack said WYG's expertise in infrastructure and programme management, as well as water and environmental services, will enable the company to deliver innovative solutions to support the UK's infrastructure needs.
"Together, we will be able to provide an expanded scope of services to our customers and offer our combined staff even greater professional opportunities," he said.
At 0900 BST, WYG shares were up 238% at 54p.