OTOC has entered into an agreement to acquire Lawrence Group Pty Ltd (Lawrence), a Sydney-based surveying consultancy, for up to $5.85m.
The acquisition is highly complementary to OTOC’s surveying capability in New South Wales (Geo-Metric and Linker Surveying) and consistent with OTOC’s national surveying strategy. The combination of Lawrence, Geo-Metric and Linker Surveying, establishes OTOC as a leader in the Sydney surveying market with strong exposure to property and infrastructure investment.
Established in 2003, Lawrence is a multi-disciplinary surveying consultancy with expertise in residential and commercial construction, civil infrastructure and land development. Lawrence has developed a blue-chip client base across each of its service capabilities, including Lend Lease, Thiess, Parkview, Richard Crookes and Roads and Maritime Services.
Lawrence is well positioned to benefit from anticipated growth in the New South Wales economy and ongoing investment in property and civil infrastructure, including the Western Sydney corridor. Lawrence has secured work on a number of key projects including NorthConnex, Darling Square, Northern Beaches Hospital and Lane Cove.
The founder of Lawrence, Shane Lawrence, will enter into a long-term employment contract with OTOC and continue to manage the business. Approximately 34% of the purchase price is in OTOC shares and performance payments. The performance payments will be payable in cash over two years. The performance payments will accrue if annual EBITDA is more than $1.2 million and are capped at annual EBITDA of $1.4 million.
The cash component of the purchase price will be funded from existing cash reserves.
Strategic Rationale
This acquisition is consistent with OTOC’s strategy of creating a premium national Surveying, Town Planning andUrban Design business:
* Expansion enhanced exposure to Sydney infrastructure and property sectors
* Services multi-disciplinary service offering, complementary to Geo-Metric and Linker
* Clients longstanding relationships with blue-chip commercial clients and government
* Financial strong track record of financial performance and growth outlook
* Management experienced executive management and senior surveyors
* Synergies combined leader in Sydney surveying market; revenue and operational synergies
* Outlook strong growth in civil infrastructure investment and residential development
Commenting on the Acquisition, OTOC CEO Simon Thomas said: “The acquisition of Lawrence Group is significant in OTOC’s national strategy, positioning OTOC as a market leader in New South Wales given the combined scale and expertise of Lawrence, Geo-Metric and Linker. Shane Lawrence and his team are highly regarded within the industry and bring significant experience across the property, construction and infrastructure sectors. I look forward to working with the team and supporting the exciting growth outlook for the business.”
Shane Lawrence said: “We at the Lawrence Group share the vision of OTOC and have mutual clients which makes for a very compelling proposition to the NSW market at it undergoes significant investment in property and infrastructure development.
With access to OTOC’s national client network, fellow industry experts and financial resources, we will continue to offer a superior level of service to our clients. We are excited and motivated by this opportunity and believe it will offer considerable value to our clients and staff.”
