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Investing.com -- Shares of Arcadis (AS:ARDS) (EURONEXT:ARCAD) climbed 2.5% after the company announced its acquisition of WSP Infrastructure Engineering GmbH, a move that doubles its presence in the German rail market.
The purchase of the firm, which specializes in rail infrastructure, signalling, structural engineering, and software development, is expected to drive significant revenue opportunities for Arcadis.
The acquisition brings 160 employees to Arcadis and is projected to contribute approximately €20 million in revenues, based on the average revenue per employee at Arcadis. This strategic move enhances the company’s capabilities in German rail design and engineering, an area that is poised for growth with Germany’s substantial investment in rail infrastructure.
The country has committed to an €86 billion investment in existing rail infrastructure from 2020 to 2029, and Deutsche Bahn has identified the need for up to €150 billion by FY34E to modernize its network.
Arcadis’ expansion in Germany is timely, as the company was recently acknowledged as a beneficiary of Germany’s new funding package. With Germany accounting for roughly 7% of Arcadis’ net revenues, the acquisition of WSP Infrastructure Engineering GmbH is a significant step in cementing its position in a key growth area.
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