LogiCamms acquires Qld firm for $11m

West Perth-based electrical engineering company LogiCamms is expected to add up to $60 million in new project opportunities following the acquisition of a Queensland business for $10.8 million.

Private company MPA Consulting Engineers (Australia) is expected to expand LogiCamm's range of services and its ability to deliver larger, more complex projects.

MPA is a multi-disciplinary engineering firm that specialises in providing civil, structural and mechanical engineering design services.

The acquisition deal comprises of $5 million in cash and the issue of 6.8 million new shares at 85 cents each and escrowed for six months.

LogiCamms is considering a number of options for the cash component including utilising existing cash reserves, bank funding or new equity capital.

The acquisition is expected to be earnings per share accretive and is expected to lift LogiCamm's revenue by 25 per cent.

LogiCamms said in a statement that it anticipates MPA will deliver earnings after tax of between $2 million and $2.4 million for 2009/10.

"We are confident that this acquisition will drive considerable national and international growth opportunities for LogiCamms, and allow the company to further consolidate its position in the Australian market," LogiCamms managing director Adam Keats said.

"We will be able to leverage our existing customer base to take on larger and more comprehensive engineering projects, effectively increasing LogiCamm's value proposition to existing and new clients.

"We have had a long standing working relationship with MPA and we are excited about the opportunity to integrate the MPA business, to further reinforce LogiCamm's position of leadership in the Australian market place."

Shareholder approval will be sought at the end of next month.

Shares in LogiCamms were up five cents to 84c at 13:47 AEDT.