Bowman Consulting Bolsters Presence In Nevada Via Acquisition Of Engineering Firm CFA
Portfolio Pulse from Shivani Kumaresan
Bowman Consulting Group Ltd (NASDAQ:BWMN) has acquired CFA, Inc., a firm offering civil engineering, planning, surveying, mapping, and remote sensing services. The acquisition is expected to be immediately accretive, with CFA's staff of approximately 30 professionals joining Bowman. The financial details were not disclosed, but the acquisition will be financed through cash, seller notes, and equity. The acquisition is expected to contribute an annualized net service billing run rate of about $5 million. As of September 30, 2023, Bowman had $14.4 million in cash and equivalents. BWMN shares dropped 1.3% to $28.68 after the announcement.
November 10, 2023 | 3:00 pm
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Bowman Consulting Group Ltd acquired CFA, Inc., expecting the deal to be immediately accretive with an annualized billing run rate of $5 million. The acquisition is financed through cash, seller notes, and equity, and BWMN shares fell 1.3% after the news.
The acquisition of CFA, Inc. by Bowman Consulting is expected to be immediately accretive, indicating a positive impact on BWMN's earnings. The addition of CFA's services and staff is likely to strengthen Bowman's market position in Nevada, which could lead to future growth. However, the short-term price drop suggests a mixed initial reaction from the market, possibly due to the lack of financial details or concerns about integration risks. Over the short term, the positive aspects of the acquisition may outweigh the initial negative price reaction, leading to a potential rebound in BWMN's stock price.
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