Leading infrastructure and environmental solutions provider Atlas Technical Consultants, Inc. has entered into a definitive agreement to be sold to private investment firm GI Partners in a $1.05 billion all-cash transaction, according to Bernhard Capital Partners, which formed Atlas in a 2017 deal and became its largest shareholder.
Under the terms of the agreement, which includes outstanding debt, Atlas shareholders will receive $12.25 per share in cash.
The deal is expected to close in the second quarter, after which Atlas will become a private company, according to a statement. BofA Securities is serving as exclusive financial advisor to Atlas.
To form Atlas, Bernhard acquired three leading infrastructure management companies — Moreland Altobelli Associates, PAVETEX Engineering, and Engineering Testing Services — ultimately growing it into a market leader through 19 subsequent acquisitions.
"Using our top-down, thematic Blueprint approach, we identified the growing need for inspection and materials testing services across commercial, state, and local levels,” Jeff Jenkins, Founder and Partner at Bernhard Capital, said in a statement. “BCP partnered with an exceptional management team to build a market-leading business to meet that specialized demand and achieve an enhanced exit valuation . . . and we are confident Atlas will only continue to grow and succeed with this new partnership."
Austin-based Atlas is an engineering services company that provides comprehensive support to large-scale infrastructure improvement programs in the public and private sectors. It has more than 100 offices in 43 states and employs about 3,500 people.
Atlas joins a number of companies flocking to private equity firms as a bearish outlook in the high-growth tech sector and turbulent markets have dragged down valuations and soured sentiment in public equity markets. For instance, in September 2022, BTRS Holdings Inc., owner of Billtrust, said it will be acquired by EQT Private Equity in an all-cash transaction, valuing its equity at nearly $1.7 billion.