SINGAPORE -- State-owned infrastructure consultancy Surbana Jurong has acquired an Australian peer for 400 million Singapore dollars ($298 million) as part of its efforts to expand in Asia.
The 100% acquisition of SMEC Holdings will increase Surbana Jurong's headcount by more than double to almost 10,000 employees across 40 countries. The company's combined revenue post-acquisition is also expected to grow to about S$1.1 billion, according to Wong Heang Fine, group CEO of Surbana Jurong in a media briefing on Monday.
Liew Mun Leong, chairman of Surbana Jurong noted that global infrastructure spending is expected to grow to $9 trillion per year in 2025 from $4 trillion per year in 2012, with Asia-Pacific representing 60% of the total. He added that Asia and other emerging economies need to work on improving infrastructure and focus on urbanization to grow and support their economies.
Surbana Jurong has been on an acquisition spree and had positioned itself to win more overseas orders. In June last year, the company bought Singaporean engineering company KTP Consultants and Chinese architectural design house Sinosun Architects & Engineers. In November, it took a stake in CITICC (Africa) Holding to increase its market share in Africa. It also bought a stake in San Francisco-based software company Flux Factory Inc.
Surbana Jurong was established last year through a merger between Surbana International Consultants, a developer of public housing, and Jurong International, which had focused on designing industrial facilities and infrastructure.