Canadian infrastructure and engineering firm WSP has agreed to acquire a Warburg Pincus-backed engineering company in a $3.3 billion all-cash transaction, marking one of the largest M&A moves in the global professional services sector this year. The deal underscores growing consolidation among engineering firms targeting digital infrastructure expansion.
- WSP to acquire Warburg Pincus-backed engineering firm for $3.3 billion in cash
- Acquired firm generated $780 million in revenue in 2024 with 4,200 engineers worldwide
- Deal expected to increase WSP’s revenue by 15% on a pro forma basis
- Transaction priced at 12x 2024 EBITDA, reflecting strong valuation in infrastructure sector
- Closing anticipated in Q2 2026 after regulatory approvals
- Strategic focus on power systems, renewables, and data center infrastructure
WSP has entered into a definitive agreement to acquire a privately held engineering consultancy backed by German investment firm Warburg Pincus, completing the transaction for $3.3 billion in cash. The acquired firm specializes in power systems design, renewable energy integration, and data center infrastructure, with operations across North America, Europe, and Asia-Pacific. This acquisition strengthens WSP’s position in high-demand sectors such as grid modernization and digital infrastructure development. The deal reflects a strategic shift toward energy and technology-driven infrastructure projects. The target company reported annual revenue of $780 million in 2024 and operates over 4,200 engineers globally. Its client portfolio includes major data center operators, utility companies, and industrial developers—sectors experiencing heightened demand due to AI-driven data growth and decarbonization mandates. WSP expects the acquisition to boost its revenue by approximately 15% on a pro forma basis and enhance its EBITDA margin by three percentage points within two years post-close. The transaction is anticipated to close in Q2 2026, subject to regulatory approvals and customary closing conditions. WSP will integrate the acquired firm’s capabilities into its Global Infrastructure and Energy divisions, accelerating delivery timelines for large-scale power and digital infrastructure projects. Market analysts note that the $3.3 billion price tag represents a 12x multiple on the target’s 2024 EBITDA, consistent with recent premiums paid in the engineering services space. The move positions WSP as a leading provider for next-generation infrastructure, particularly in regions where grid capacity lags behind demand—such as Silicon Valley, where data centers face prolonged delays due to utilities’ inability to deliver power.