Dutch engineer Arcadis is to buy UK rival Hyder for $432m. The deal has been approved by the boards of both companies.
According to the terms of the deal, Arcadis will pay $10.95 per share, a premium of 38.5% on the closing price of $7.89 on 30 July.
Neil McArthur, the chief executive of Arcadis, said: "Hyder is a unique company with a long history of being involved in the leading edge of design and engineering.
Through the transaction we see an excellent opportunity to better serve our clients by further deepening our capabilities in global design and engineering in growth markets whilst creating exciting career opportunities afforded by a stronger global growth platform for staff in both companies."
Ivor Catto, the chief executive of Hyder, said: "Although the board believes Hyder has a strong future as an independent business, it considers that this cash offer substantially recognises Hyder’s growth prospects, and provides certainty, in cash, to our shareholders today."
Hyder employs 4,500 people globally and operates in Asia, Australia, the Middle East and the United Kingdom.
Earlier this year Arcadis was selected by Belgian bank BNP Paribas Fortis to programme manage its headquarters in downtown Brussels.
