UPDATE 1-WSP Global to buy Balfour Beatty's U.S. professional services unit
(Adds details from the statement, share close)
Sept 3 (Reuters) - Canada's WSP Global Inc said it would buy Balfour Beatty Plc's U.S. professional services division, Parsons Brinckerhoff, for an enterprise value of about $1.24 billion, to increase its footprint in the U.S. transportation segment.
The deal will also help WSP expand in the United Kingdom and give it a stronger presence in key growth regions such as Asia and Australia, the company said.
The deal is being financed through a combination of a $502 million bought deal public offering, $400 million in private placement and new credit facilities, WSP Global said.
In a bought deal, underwriters commit to purchase the entire offering from a client and then resell it.
WSP Global has entered into an agreement with CIBC and Raymond James, on behalf of a syndicate of underwriters, to finance part of the deal.
The deal includes an additional consideration for cash retained by Parsons Brinckerhoff of up to $110 million, WSP said.
WSP expects the deal to close in the fourth quarter and result in cost savings of about $25 million a year over two years.
Barclays and CIBC are acting as financial advisers to WSP. Stikeman Elliott LLP is the company's legal adviser. Hogan Lovells LLP is providing legal advice to WSP with respect to U.S. law.
WSP's shares closed at C$36.95 on the Toronto Stock Exchange on Wednesday. (Reporting by Sneha Banerjee in Bangalore; Editing by Simon Jennings)
DAVOS, Switzerland - Central banks have done their best to rescue the world economy by printing money and politicians must now act fast to enact structural reforms and pro-investment policies to boost growth, central bankers said on Saturday.