星空传媒

Two major acquisitions were struck in the last week with a combined value of 拢39m, leading to predictions of further consolidation in the QS and project management sector.

Dispute and project management group Precept Programme Management was snapped up for 拢28m late last week by relatively unknown US-listed consultancy group Navigant Consulting. The Precept sale, first revealed last Friday on the QS News website, was followed by White Young Green's acquisition of Tweeds for 拢11m, announced on Tuesday. The two deals highlight consolidation in the sector, leading figures claimed this week.

Peter Vince, managing director of AYH, which was bought by Dutch group Arcadis for 拢21m last year, said the deals were a sign of things to come. "The market is consolidating, there's no question of that," he said. "Firms are looking for more global capability to deliver projects on a wider scale. Bigger is more beautiful. You are either mobile or niche or you are likely to become part of a bigger organisation."

Vince added that firms such as AYH and Tweeds offered bigger groups higher end consultancy services. "Engineering firms such as Arcadis and White Young Green are looking for greater added value services. Someone like Precept does high end specialist work but may have struggled to do that outside of their home patch."

Navigant said the acquisition would spearhead an international push by the Chicago-based firm, which has a turnover of 拢328m and also works in the health, energy and financial sectors. It already has a 50-strong operation in London, headed by Don Harvey and recently opened offices in Hong Kong and Shanghai. "London is the hub for international dispute resolution opportunities," Navigant chief financial officer Ben Perks told QS News. The deal creates a UK presence of over 100 staff for Navigant. Precept directors David Barry, Brian Norton and Paul Barry will become managing directors at the newly formed practice.

You are either mobile or niche or you are likely to become part of a bigger organisation

Peter Vince, AYH

Speaking about the price Perks said: "We have a tremendous amount of respect for their professional capabilities. This is an important transaction for us and it gives us a real business base in a fabulously growing marketplace."

The Tweeds acquisition follows an initial approach by White Young Green last September. WYG chief executive John Purvis said Tweeds' private sector experience and geographical spread would open up new opportunities for further growth at the firm. "They are an extremely well established business with a fantastic reputation."

Tweeds's 150 staff will merge into WYG's management services business, which already has 100 project and property managers and health and safety consultants. Tweeds director, Peter Swift, will head that unit and the rest of the management will stay at the firm in its London, Liverpool, Manchester, Birmingham, Mold and Isle of Man offices. Purvis said the acquisition would allow the firm "more strategic engagement with our clients".