Bowman Consulting Buys Excellence Engineering - What's On the Cards?
Portfolio Pulse from Lekha Gupta
Bowman Consulting Group Ltd (NASDAQ:BWMN) has agreed to acquire Excellence Engineering, LLC, a provider of engineering, procurement, project management, and automation services. The deal, financed with cash, seller notes, and equity, is expected to close in early October. The acquisition is projected to have an initial annualized net service billing run rate of about $4.0 million. BWMN recently won a multi-year contract from Canadian National Railway Co (NYSE:CNI) for as-needed engineering and design work.
September 29, 2023 | 1:07 pm
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NEUTRAL IMPACT
Canadian National Railway Co (CNI) recently awarded a multi-year contract to Bowman Consulting Group. This contract could potentially boost CNI's operational efficiency.
While the contract awarded to Bowman Consulting Group could potentially improve CNI's operational efficiency, the direct impact on CNI's stock price is uncertain without more specific details about the contract.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 50
POSITIVE IMPACT
Bowman's acquisition of Excellence Engineering is expected to boost its annualized net service billing run rate by $4.0 million. This, along with the recent contract win from CNI, could positively impact BWMN's stock in the short term.
The acquisition of Excellence Engineering is expected to be immediately accretive to Bowman's earnings, which could lead to a positive reaction in the stock market. Additionally, the recent contract win from CNI further strengthens Bowman's business prospects.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 100