Engineering firm Ricardo has agreed to a £281m takeover by Canadian consultancy titan WSP in the latest overseas takeover deal on the London Stock Exchange.
Ricardo has endorsed the 430p per share bid, which represents a 28% uplift from its June 10 closing price of 326p and a 69% premium over its 90-day average, as reported by City AM.
WSP has announced that it has secured pivotal backing from investors for the buyout, with letters of intent from Gresham House, Aberforth Partners, and Royal London Asset Management, accounting for approximately 48% of Ricardo’s shares.
Additionally, WSP UK has struck a deal to acquire nearly 20% of Ricardo’s shares from Science Group at 430 pence each, strengthening its stake in the company. The transaction is slated for completion in Q4 of 2025, pending regulatory consents.
Mark Clare, Ricardo’s chair, said: “WSP has made a compelling offer which represents a highly attractive premium to recent average trading levels and provides certain value in cash today for Ricardo shareholders.
“Importantly, the Ricardo directors believe that the acquisition will provide enhanced career opportunities for Ricardo’s employees within the WSP Group as well as access for our clients to a broader service offering.”
Science Group had campaigned for Clare’s removal as Chair at the end of May, criticising the firm’s “blinkered perspective” and “extraordinary denial of reality”.
Ricardo is based in West Sussex and has offices across the UK including in Bristol, Derby, Leamington Spa, Manchester and Sheffield.
The takeover of WSP will represent another delisting setback for the beleaguered London Stock Exchange. This comes on the heels of a flurry of UK takeovers on Monday, resulting in three separate billion-pound mergers and acquisitions as tech behemoths hunted for British deals.
The news was announced during London Tech Week, where the Prime Minister aimed to highlight the success of the sector.
The 2025 delistings continue the trend from last year, which witnessed the largest exodus from the London stock market since the global crisis. A total of 88 companies either abandoned their listing or moved their primary listing from the main market, including Paddy Power owner Flutter and tech favourite Darktrace.
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