NV5 Global, an engineering services company, has acquired Geodynamics, a provider of sonar-based, deep-water geospatial solutions, in a cash-and-stock deal worth $42 million, including an earn out provision.
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North Carolina-based Geodynamics will operate within NV5’s (NVEE) geospatial vertical, which will add full-ocean depth hydrographic and geophysical surveying to the company’s topographic and nearshore geospatial capabilities, the company said.
With this acquisition, NV5 is hoping to expand NV5 geospatial’s marine solutions strategy and create a competitive edge in multi-solution, hydrographic surveying projects, the company also noted.
The deal will be immediately accretive to NV5’s earnings.
NV5 CEO Dickerson Wright said, “As the nation’s premiere provider of geospatial data solutions, we continue to pursue opportunities to expand our leading position in the geospatial market.”
“The addition of Geodynamics gives NV5 an established presence in the oceanic geospatial sector to support projects related to offshore wind power, sea level rise, shoreline mapping, underwater habitat modeling, and nautical charting,” Wright added. (See NV5 Global stock analysis on TipRanks)
Following the announcement, Roth Capital analyst Jeff Martin maintained a Buy rating and a price target of $133 (43.2% upside potential) on the stock.
Martin is positive about the deal and said that it brings a “high EBITDA margin profile with healthy growth potential.”
Shares have rallied 144.3% over the past year, while Wall Street analysts are still bullish about the stock. The Strong Buy consensus rating boasts 3 Buy ratings versus 1 Hold rating. Looking ahead, the average analyst price target stands at $126.33, putting the upside potential at 36% over the next 12 months.
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