Canada’s Stantec Inc (TSX, NYSE: STN) has agreed to sell Innovyze, a U.S. provider of water infrastructure modeling and simulation software solutions, to an affiliate of European alternative investments firm EQT. EQT agreed to pay US$270 million for the business in a deal expected to close in the second quarter. Stantec, an Edmonton professional consulting services company, acquired Innovyze as part of last year’s buy of MWH Global Inc. EQT said in a separate release it will support Innovyze’s continued growth through a focus on new product capabilities, customer segments and geographies.
Stantec Signs Agreement to Sell Innovyze
Firm divests of smart water infrastructure modeling and simulation software company
EDMONTON, ALBERTA and NEW YORK, NEW YORK–(Marketwired – March 21, 2017) – Stantec (TSX:STN) (NYSE:STN) Global design firm Stantec today announced it has signed an agreement for the sale of its software business, Innovyze, for USD$270 million to the EQT Mid Market US fund, part of the international alternative investments firm EQT. Innovyze joined Stantec through the MWH acquisition which closed in 2016. Subject to customary conditions and regulatory approvals, it is anticipated that the sale will close in Q2 2017.
“Innovyze is an impressive, growing business and we see this as an opportunity to continue working with them in servicing our clients while allowing both our companies to prosper with the best available resources,” said Bob Gomes, Stantec President and Chief Executive Officer.
Founded in May 1996, Innovyze is a leading global provider of wet infrastructure business analytics software solutions designed to meet the technological needs of water/wastewater utilities, government agencies, and engineering organizations worldwide. The company’s clients include the majority of the largest UK, Australasian, East Asian and North American cities, foremost utilities on all six continents, and ENR top-rated design firms.
“We have been passionately building significant global market presence and vanguard water and wastewater modeling and simulation technology since I founded the company over twenty years ago, and we excelled in superior customer care,” said Paul F. Boulos, Ph.D., BCEEM, Hon.D.WRE, Dist.D.NE, Dist.M.ASCE, NAE, Chairman, CEO and President of Innovyze. “Joining forces with EQT will help us further enhance our technology innovation and talent pool to even better serve our fast growing customer base. This is an ideal match of culture and technology, and a great win for the critical water and wastewater industry. I look forward to leading Innovyze to unprecedented levels of success for our customers, their communities and the environment.”
The larger integration of the MWH business into Stantec’s operations continues, with North American divisions expected to be complete in Q2 2017 and successive parts within the next 18 months.
Robert W. Baird served as exclusive financial advisor and Paul, Weiss, Rifkind, Wharton & Garrison LLP acted as legal advisor to Stantec on the transaction.
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