Thursday, 18 April 2024

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Bowman Consulting to acquire Surdex for $44 million By

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RESTON, Va. – Bowman Consulting Group Ltd. (NASDAQ: BWMN), a national engineering services firm, has announced a definitive agreement to acquire Surdex Corporation, a geospatial and engineering services firm. The $44 million deal, which includes cash, seller notes, and shares, is expected to close by April 10, 2024, pending customary closing conditions.

Surdex Corporation, a St. Louis-based company established in 1954, specializes in digital orthoimagery, LiDAR, and intelligent digital mapping. Their services support various public and private sector functions, such as infrastructure planning, environmental studies, and disaster response planning. Surdex’s clientele includes multiple state departments of transportation and federal agencies like the US Department of Agriculture and the US Geological Survey.

Gary Bowman, CEO of Bowman, sees the acquisition as a strategic move to expand geospatial services and grow public sector market presence. He anticipates immediate cost savings and revenue synergies, citing Surdex’s high-resolution image capture and processing services as key assets. Ron Hoffmann, president of Surdex, expressed confidence in the partnership, highlighting Bowman’s market access as a decisive factor in the agreement.

The acquisition is set to enhance Bowman’s offerings by integrating Surdex’s high-altitude geospatial solutions with its terrestrial and low-altitude capabilities. Surdex is projected to operate at an annualized net service billing run rate of approximately $28 million post-acquisition.

The transaction’s purchase price multiple on adjusted EBITDA is at the higher end of Bowman’s target range, but the acquisition is expected to be immediately accretive with respect to adjusted EBITDA per share, a non-GAAP metric. Bowman will provide more detailed information on M&A activities and guidance updates in its upcoming quarterly and annual communications.

This move marks a significant step for Bowman as it continues to expand its services and solidify its position in the geospatial market. The information in this article is based on a press release statement from Bowman Consulting Group.

InvestingPro Insights

Bowman Consulting Group Ltd.’s definitive agreement to acquire Surdex Corporation represents a strategic expansion into the geospatial sector. As the company embarks on this significant step, it’s valuable to consider the financial health and market performance of Bowman, as reflected in key metrics and insights from…

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