Engineering consultant Tetra Tech Inc., Pasadena, Calif., said it has reached a deal to acquire U.K.-based environmental firm RPS Group for 222 pence per share, converting to about $695 million, exceeding WSP Global’s previous offer of 206 pence per share, equal to about $646 million—for a premium of 7.8%. Tetra Tech says the all-cash transaction, set to close in the fourth quarter, would be the company's largest acquisition and boost its employee roster to 26,000.
Observers speculate that WSP, which has executed several acquisitions recently, would make a counter offer to add RPS capabilities. In a Sept. 26 online statement, WSP said it is "considering its options ... and a further announcement will be made in due course."