A Singapore-based urban development consulting company has acquired Australian infrastructure consulting firm, SMEC, for $400 million, in a bid to create a global infrastructure powerhouse.
Surbana Jurong, one of Asia’s leading consultancies in urban developments has acquired 100 per cent of Australian-based SMEC Holdings.
The combined consultancy group will have a global workforce of almost 10,000 employees in over 95 offices across 40 countries in Asia, Australia, the Middle East, Africa and the Americas.
It will be one of the largest infrastructure consulting firms in Asia with a combined revenue of about $1.1 billion.
SMEC CEO and Managing Director Andy Goodwin said, “We are delighted about this partnership with Surbana Jurong, an Asian powerhouse, who will further accelerate and support SMEC’s growth ambitions.
“This partnership is a reflection of the strategic value of our business and its potential to further deliver solutions internationally. It also signifies recognition of the professional skills at SMEC.”
Mr Goodwin said the combined entity will not only benefit clients, but also deliver enhanced growth opportunities for employees and partners.
“We are confident that the synergies between SMEC’s progressive culture and Surbana Jurong’s established company values will result in a mutually beneficial partnership over the long term,” Mr Goodwin said.
Chairman of Surbana Jurong Liew Mun Leong said, “A large part of Asia and other emerging countries have to catch up with their deficit in urbanisation and infrastructure development in order to grow and support their economies.”
Mr Leong said a report by infrastructure advisory firm PwC expects infrastructure spending to grow from US$4 trillion in 2012 to more than US$9 trillion per year in 2025, 60 per cent of which will be in the Asia-Pacific region.
“In addition to financing and funding, wide and deep technical expertise in urbanisation and infrastructure development will be needed,” Mr Leong said.
“Singapore and Australia have successfully done many major showcase national development projects through Surbana Jurong and SMEC.
“Besides their complementary strengths, both companies have very similar corporate cultures and core values.”
Mr Leong said the acquisition is a timely and opportunistic opportunity for the synergetic merger of the two organisations to share their expertise and capture the huge market opportunities.
“Going forward, Surbana Jurong/SMEC will be positioned as the largest development consultancy group based in the Asia Pacific region,” Mr Jeong said.
“On behalf of the board of directors and management, I wish to warmly welcome SMEC to the Surbana Jurong family.”
Group CEO of Surbana Jurong Wong Heang Fine said, “Surbana Jurong and SMEC share complementary strengths and competencies as well as a rich and proud heritage of major iconic projects recognised around the world.”
Mr Fine said SMEC’s experience and strength in major infrastructure projects in the urban transport, energy and water sectors coupled with Surbana Jurong’s track record and expertise in urban planning, township and industrial development, will enable the company to offer unique complete value chain services in urban and infrastructure solutions to our clients globally.
“As a company with a worldwide presence, global experience and expertise with local knowledge, we will be able to assist our clients to solve complex challenges in different markets,” Mr Fine said.
“We will also be able to use our wide network of clients to find synergistic development and business opportunities across various sectors and geographies.
“Together, the company will be in a unique position to capture opportunities in the global market, and I believe this will put us on a path to accelerated growth.”
