HOLLYWOOD, Fla. - NV5 Global, Inc. (NASDAQ:NVEE), a provider of professional and technical engineering and consulting solutions with a market capitalization of $1.27 billion, has announced the acquisition of Global Fire Protection Group (Global FPG), a fire safety engineering and consulting firm. The transaction, which includes a combination of cash and stock, is expected to be immediately accretive to NV5's earnings. According to InvestingPro data, NV5 maintains impressive gross profit margins of 51.76% and has demonstrated solid revenue growth of 9.86% over the last twelve months.
Global FPG is known for its comprehensive fire protection services across various sectors such as data centers, healthcare, utilities, and industrial markets. With the acquisition, NV5 aims to integrate Global FPG's fire safety expertise with its existing mechanical, electrical, plumbing, and technology design services. This move is anticipated to provide a high-margin, recurring service offering and bolster NV5's cross-selling opportunities. The company's strong financial position is evident in its healthy current ratio of 2.05, indicating ample liquidity to support its expansion strategy. InvestingPro analysis suggests the stock is currently trading below its Fair Value, presenting a potential opportunity for investors interested in the engineering services sector.
Dickerson Wright, PE, Executive Chairman of NV5, expressed confidence in the acquisition, stating that bringing Global FPG's services in-house aligns with NV5's strategic growth in the fire protection engineering and consulting domain. Ben Heraud, CEO of NV5, highlighted the increasing demand for fire protection consulting due to regulatory requirements and the need to mitigate risks to property and people.
Global FPG, with its experience in both active and passive fire protection disciplines, is licensed in all 50 U.S. states, eight Canadian provinces, and has completed projects in 39 countries. The company's engineers boast over a century of combined experience in the field.
Patrick Tesche, President of Global FPG, remarked on the merger's potential for the company to tackle larger projects and provide growth and career opportunities within NV5.
This acquisition is part of NV5's broader strategy to expand its service offerings and reinforce its position in the market. NV5 operates more than 100 offices nationwide and overseas, providing technology, certification, and consulting solutions across multiple business verticals. While the stock is currently trading near its 52-week low, InvestingPro subscribers have access to 8 additional key insights and a comprehensive Pro Research Report that provides in-depth analysis of NV5's growth strategy and market position among 1,400+ top US stocks.
The information reported is based on a press release statement from NV5 Global, Inc.
In other recent news, NV5 Global, Inc. has reported robust financial performance for the third quarter of 2024, with a 6% increase in organic growth, a 13% rise in gross profit to $129.5 million, and net income climbing by 31% to $17.1 million. The company also completed the acquisition of Southport Engineering Associates, a move expected to immediately contribute to NV5's earnings. The company has also secured infrastructure consulting contracts totaling $14 million in Southern California and $46 million for grid hardening projects in the Western United States. These are recent developments that underline the company's commitment to growth and service expansion. Analysts from InvestingPro suggest that NV5 may be undervalued, maintaining a healthy financial position with liquid assets exceeding short-term obligations. Despite potential challenges in larger CapEx projects due to rising interest rates, NV5 remains optimistic about growth in the Asia-Pacific region and its Technology and Acoustics Group.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.