In a move industry observers say is linked to a desire for more specialized skills, ARCADIS, the billion-dollar global consulting and engineering giant based in Arnhem, The Netherlands, announced Nov. 2 that it has acquired PinnacleOne Inc., a Phoenix, Ariz., construction and program management firm (CM-PM) with estimated 2006 revenue in the U.S. of $35 million. Terms of the deal were not disclosed.
"PinnacleOne brings us further along our path of meeting a growing need among our clients for seamless global project delivery," says ARCADIS CEO Harrie Noy. "This acquisition fits very well in our recently established ARCADIS worldwide project consulting initiative that is focused on cost effective global delivery of project management expertise."
ARCADIS is ranked 12th on ENR's list of the Top 150 Global Design Firms for 2006, with $1.24 billion in design revenue. The firm also reports about $140 million in global CM-PM revenue. ARCADIS, through its U.S. base in Denver, is also ranked 20th on ENR's list of the Top 500 Design Firms list, reporting $560 million in 2005 revenue. "This acquisition further strengthens our position in the U.S. market and increases our presence to about 3,500 people," says Steve Blake, CEO for ARCADIS' U.S. operations. There are about 10,000 employees in the global company, according to ARCADIS.
In addition to its CM-PM expertise, PinnacleOne provides dispute avoidance and resolution and strategic consulting for large construction programs, the company says. "We see a great fit between the national and international services of ARCADIS and those of PinnacleOne," says firm CEO Charles Dahill.
"We will continue to see large international CM-PM firms buy smaller regional and specialized firms," says one industry executive. "Merger and acquisition activity is a sign of the growing need for the services that these companies offer, but it is also due to the shortage of experienced staff professionals."