Perth-based Veris has sold its advisory service arm Elton Consulting to global engineering group WSP for $13 million, in a bid to retire debt and strengthen the company's cash position.
Perth-based Veris has sold its advisory service arm Elton Consulting to global engineering group WSP for $13 million, in a bid to retire debt and strengthen the company's cash position.
Under the sale, WSP Australia will acquire 100 per cent of the shares in Sydney-based Elton Consulting, which has 115 employees.
As part of the agreement, Elton will pay a dividend of around $920,000 to Veris before December 31.
Veris managing director Adam Lamond said the board made the decision to sell Elton Consulting after a strategic review of the company’s businesses.
“The timing of this sale is right for Veris as it drives focus on our core service offerings in Veris Australia at a time when the market demand for these services is increasing,” Mr Lamond said.
“It will reposition the group’s portfolio for continued future growth and success.”
Canada-based WSP said the acquisition supported its global strategic plan to diversify into strategic advisory areas and offer clients a broader range of consulting services.
“Our clients have told us that strategic advice, urban and regional planning, as well as early and consistent community engagement are increasingly critical to their success," said Guy Templeton, President & CEO of WSP in Australia & New Zealand.
"Elton Consulting’s skills-base and deep experience add depth to WSP’s existing capabilities and combined with their other services, we have a truly powerful offering.”
Founded by Brian Elton, the firm was acquired by Veris last year for $12 million, and has since contributed earnings of around $4.3 million to the group.
In the year to June 30, Elton Consulting contributed roughly 14 per cent to the Veris group’s annual revenue of $126 million, as revealed in Veris’ annual report.
Veris' other business Aqura Technologies contributed around 11 per cent to Veris’ annual revenue, with the remaining 74 per cent from Veris Australia.
Mr Elton led the Veris Australia business in an interim role for one year until Michael Shirley took over as chief executive last month.
Veris said Mr Elton is a significant shareholder in the company and will remain on the board as a non-executive director.
Shares in Veris were up 2.99 per cent to trade at 6.9 cents per share, as at 3:15pm AEDT.
