Professional infrastructure and environmental services consultancy, Cardno (ASX:CDD) has agreed to buy TGM, a Victorian based engineering services company.
TGM employs 130 people and specialises in the approval, design and completion of urban development, building and infrastructure projects.
On completion of the transaction, Cardno will pay up to $21.6 million in cash for TGM, with 20 per cent of the purchase price subject to achieving performance targets over the next two years.
The acquisition will be funded by a combination of cash resources and financing facilities.
TGM is expected to contribute approximately $23 million in revenue over the next twelve months.
Shares in Cardno (ASX:CDD) closed up 4.48 per cent $1.05 yesterday.