Netherlands-based engineering consultant Arcadis says it will buy Spanish power design specialist Satel as it looks to strengthen its grid modernization, renewable energy and data center hyperscaling capabilities across Europe. The acquisition deal comes after Arcadis confirmed that it received a second unsolicited, conditional non-binding proposal on July 23 from Canada-based engineering giant WSP Global to be acquired for $5.4 billion.
Terms of the Arcadis buyout deal for Satel, announced on July 28 and set to add 250 employees to its headcount, were not disclosed.
Related to WSP Global’s effort to acquire Arcadis, the Dutch firm rejected its first offer, shared July 14 for $4.8 billion, over strategic and cultural fit concerns and said it “fundamentally undervalued the company.”
Arcadis CEO Heather Polinsky said in a statement that the Satel acquisition “broadens our ability to support clients as investment accelerates in grids, renewables, data centers and resilient infrastructure …. that will underpin Europe’s energy transition and enable its digital future.”
With Spain expected to inject around $22 billion into modernizing its power grid through 2030, Satel’s expertise in delivering high-voltage power infrastructure is already well-positioned for this buildout, with Arcadis noting that the Spanish firm has participated in projects involving more than 20,000 km of high-voltage transmission lines and more than 1,000 substations.
Satel CEO Pablo Bernat added that joining Arcadis is a “natural next step” for the company’s business and “creates new opportunities” and broadens “our range of expertise and global delivery capability.”
An Arcadis spokesperson told ENR that Polinsky is expected to address the strategy behind the Satel acquisition during its second quarter results call on July 30. So far, results demonstrate “positive operational momentum” as it pursues a strategy to “accelerate growth, improve margins and enhance cash generation,” the spokesperson said.
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Such a strategy appears to have played a role in WSP Global’s bid to continue negotiatiions with an increased acquisition offer.
“To date, the boards of Arcadis have not accepted WSP’s multiple invitations to discuss the proposals and negotiate a friendly, recommended transaction,” WSP Global said in a press release, confirming submission of its proposal. The company “reiterates its invitation” to Arcadis “to discuss its latest proposal and address any remaining concerns through constructive engagement.”
WSP Global expanded its position in the power sector with acquisitions of U.S.-based leader TRC Cos. Inc., completed in February for $3.3 billion, as well as Power Engineers Inc. in 2024 for $1.78 billion, amid rumors last year that it also sought to add Jacobs to its portfolio
Arcadis ranks at No. 8 on ENR’s most current Top 225 Global Design Firms list, reporting $5.5 billion in 2024 global engineering revenue, wth WSP Global ranked No. 3, reporting $10.5 billion.The updated ranking will be released in August.
Source: www.enr.com
