Consulting Sector M&A Deals for week beginning 27th July

businessman doing handstand on the beachHero MotoCorp (UK) acquired Erik Buell Racing (USA)
Deal Size: $2.8 million Industry: Engineering consulting Date: July 2015
Erik Buell Racing recently filed for bankruptcy protection. The filing was under a clause for a company looking for a way to find its feet again rather than close operations. Hero MotoCorp (HMCL NA and HMCL Americas, to be precise), which until now had a 49.2 per cent stake in the American sport motorcycle manufacturing outfit, has now stepped in with a ‘settlement agreement’ for $2.8 million that allows Hero to acquire some of EBR’s tangible and intangible assets. The settlement agreement is still pending approval from the Circuit Court in Wisconsin, USA and the board of directors of Hero MotoCorp until August 10, 2015. Upon approval, Hero MotoCorp’s R&D teams will be able to influence and spur some of the consulting projects that EBR was executing at the time of filing for bankruptcy. This development should help Hero gain more access to EBR’s technical know-how. The upcoming Hero HX 250R is reportedly a result of the technical collaboration with EBR. The new Hero Karizma ZMR, in fact, has a similar rear end design as the EBR 1190 RX.

Altran (France) acquired SiCon Design Technologies (India)
Deal Size: Undisclosed Industry: Engineering consulting Date: July 2015
France’s innovation and consulting firm Altran has acquired homegrown SiCon Design Technologies (SiConTech) for an undisclosed amount. SiConTech, an engineering services company specialising in semiconductor design, was founded in 2010 and has over 500 employees.

GeoTraq Inc. (USA) to acquire OmniM2M (USA)
Deal Size: Undisclosed Industry: IT consulting Date: July 2015
GeoTraq, Inc., a development stage company focused on developing next-generation wireless location technology, announced it intends to acquire OmniM2M, a technology consulting company focused on analytics. Under the terms of the Letter of Intent, GeoTraq will issue to the shareholders of OmniM2M and Ci2i a total of 120m common shares. Both OmniM2M and Ci2i had combined gross revenues of over $1m in 2014. The acquisition will create immediate additional revenues to GeoTraq from existing OmniM2M and Ci2i contracts, and significantly increase the company’s bottom line and overall shareholder value. The acquisition will close pending satisfactory due diligence, final acquisition agreement and board approval.

DealCapital.com (USA) to merge with Merit Harbor Group (USA)
Deal Size: Undisclosed Industry: Management consulting Date: July 2015
DealCapital.com, a middle-market, private investment bank announces a business combination with Merit Harbor Group, a Tacoma, Washington-based investment bank and strategy consulting firm. The business combination includes both key deal-sourcing assets and technology tools as well as acquired leadership. The business combination is expected to aid the Merit Harbor Group in more rapidly growing its investment banking practice into new locations across the United States. The Managing Director of DealCapital.com expressed “We’re excited to join the Merit Harbor Team and expect our combined capabilities will produce large growth opportunities for both firms.”

HESM&A Consulting Engineers (USA) merged with Salas O’Brien (USA)
Deal Size: Undisclosed Industry: Engineering consulting Date: July 2015
HESM&A Consulting Engineers, a provider of mechanical, electrical and fire suppression engineering as well as commissioning service, has merged with Salas O’Brien, a facilities planning, design and construction management firm. Pursuant to the transaction, HESM&A will be known as HESM&A Salas O’Brien; and all of the HESM&A shareholders will be shareholders of the combined organization. The transaction will enable HESM&A and Salas to strengthen their service capabilities as well as add more depth and breadth of experience.

CherryRoad Technologies, Inc. (USA) has acquired the Oracle practice (USA)
Deal Size: $5.8 Industry: IT consulting Date: July 2015
CherryRoad Technologies, Inc., an integrator of enterprise software, has acquired the Oracle practice, including the e-business and cloud activities of Strategic Information Solutions, Inc., a technology consulting company. The acquisition will allow CherryRoad to expand the company’s market share, allowing it to offer Oracle solutions to the public sector. It is also an addition to CherryRoad’s Oracle practice and managed services abilities.

Constellation Software (Canada) has acquired CAE’s mining software company Datamine (UK)
Deal Size: Undisclosed Industry: IT consulting Date: July 2015
Constellation Software has bought CAE’s mining software company Datamine for an undisclosed amount. Datamine provides mining software technology and service that is used for planning, managing and optimising mining operations. According to CAE, Datamine has provided consulting services to over 1,400 companies worldwide, and it has developed technology and services to improve efficiency and safety of mine operations. The company also provides high quality implementation, training and advisory consulting services to help mining companies realise full potential from technology investment. Constellation said that Datamine would hereafter operate within Constellation Software’s Vela Software Division. CAE president and CEO Marc Parent said: “As reported last year, we decided to sell our mining business in order to concentrate our capital investment and management resources on our three core markets: civil aviation, defence and security, and healthcare”.

Jones Lang LaSalle, Inc. (USA) acquired LodgeTax (USA)
Deal Size: Undisclosed Industry: Management consulting Date: July 2015
JLL has closed the previously announced acquisition of LodgeTax, a national leader in hotel real estate tax services and consulting. The acquisition boosts JLL’s position as a leading advisor in the hospitality industry. Louis Breeding and David Calverley, co-founders of LodgeTax, joined JLL’s Hotels & Hospitality Group as Executive Vice Presidents. “As we’ve been talking to clients over the last month, their reaction has been extremely positive,” said Breeding. “They appreciate the ability to tap into JLL’s broader platform with a customized approach to meeting their individual needs under one roof. Our shared commitment to client relationships allows us to be a valued partner to our clients across the country.”

Code Rebel Corporation (USA) to acquire ThinOps Resources LLC (USA)
Deal Size: $9.25million Industry: Management consulting Date: July 2015
Code Rebel Corporation has entered into a definitive purchase agreement to acquire 100% stake in ThinOps Resources LLC, a provider of management and technology consulting services to help organizations maximize the business value of their technology investments. Both companies involved in the transaction are based in the US. The purchase consideration for the acquisition is approximately USD9.25 million, payable in cash and stock. Code Rebel is a developer and marketer of interactive remote application (iRAPP) terminal services (TS) solution ThinOps Resources reported revenue of approximately USD2 million in 2015. The acquisition is subject to customary closing conditions and is expected to close by July 31, 2015.

APC Technology Group PLC (UK) acquired EEVS Insight Ltd. (UK)
Deal Size: £164k Industry: Engineering consulting Date: July 2015
APC Technology Group PLC on Thursday said it has acquired EEVS Insight Ltd for GBP 164,461, payable entirely in APC shares. APC said the acquisition of EEVS, which provides energy efficiency performance consulting services, will strengthen its position in the energy efficiency sector. “The acquisition of EEVS Insight brings significant new expertise into the group. EEVS has good brand recognition across the UK’s energy efficiency sector and we have no doubt that the services it provides will benefit Minimise’s growing customer base, especially those customers looking to achieve improved energy efficiency through the implementation of third party-financed energy efficiency projects,” said APC Chief Executive Mark Robinson.

ABT Oil and Gas (UK) to merge with Arup (UK)
Deal Size: Undisclosed Industry: Engineering consulting Date: July 2015
ABT Oil and Gas – Enegi Oil’s joint venture with ABTechnology – has signed a collaboration agreement with global engineering and design consultancy Arup. Enegi Oil says the addition of Arup to the consortium is a very positive step for the initiative as Arup has considerable project management experience that will enhance the consortium’s ability to deliver its range of solutions to budget and on schedule. Arup also brings an additional proven-in-use structure (the ACE platform) that can house ABTOG’s normally unattended topsides.

IBM (USA) has acquired Compose, Inc. (USA)
Deal Size: Undisclosed Industry: IT consulting Date: July 2015
International Business Machines Corporation (IBM), a US-based provider of information technology and consulting services, has acquired Compose, Inc., a provider of database as a service (DBaaS) for web and mobile app developers. Both companies involved in the transaction are based in the US. Compose offers MongoDB, Elasticsearch, RethinkDB, Redis, PostgreSQL and other database as services.

Egis (USA) has acquired 51% Projacs (UAE)
Deal Size: Undisclosed Industry: Management consulting Date: July 2015
Egis acquires 51% of Projacs, the leading project and construction management firm in the Middle East. This transaction represents a new stepping stone for the development of both Egis and Projacs. Founded in 1984, Projacs offers a wide and integrated range of project management services mainly relating to building projects. The firm is firmly established in the Gulf Cooperation Council (GCC) countries (Saudi Arabia, Bahrain, Oman, Qatar, United Arab Emirates and Kuwait) and also operates in neighbouring countries. With a workforce of 700 people and a turnover of USD 70 million in 2014, the company is a leading figure in the region, ranking among the global top 15 in the ENR (Engineering News Record) list of project management consultancies (excluding American firms). The firm also has its own training institute which accounts for 11% of its annual business. With over USD 2500 billion worth of projects under planning, bidding or execution across the MENA region, both Egis and Projacs see significant opportunities for partnership and have over the past few months began sharing resources and capabilities as well as developing joint approaches for business development.

Black & Veatch (USA) has acquired RCC Consultants (USA)
Deal Size: Undisclosed Industry: Engineering consulting Date: July 2015
Black & Veatch has further enhanced its capabilities in delivering telecommunications services for public safety networks with the acquisition of RCC Consultants. RCC is a global engineering and consulting firm serving public safety and private networks. It is headquartered in Woodbridge, New Jersey. RCC provides synergy for Black & Veatch efforts to expand network engineering, procurement and construction (EPC) work for public safety clients. RCC brings strong brand equity in the marketplace through its public safety and critical infrastructure experience. It also blends its consulting and asset management expertise with the large-scale project delivery capabilities of Black & Veatch.

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