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Tetra Tech acquires Convergence to boost digital services

Published 09/05/2024, 14:58
TTEK
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PASADENA, Calif. - Tetra Tech , Inc. (NASDAQ: NASDAQ:TTEK), a global provider of high-end consulting and engineering services, has announced the acquisition of Convergence Controls & Engineering, a company specializing in process automation and systems integration.

This strategic move is aimed at enhancing Tetra Tech's digital water and energy practices, furthering their capacity to offer integrated automation platforms that facilitate real-time data analytics and decision support.

The acquisition allows Tetra Tech to incorporate Convergence's expertise in digital controls, advanced data analytics, and cybersecurity into its 'Leading with Science' approach. Dan Batrack, Chairman and CEO of Tetra Tech, expressed that the addition of Convergence's team of engineers and consultants will expand their capabilities to serve clients in the water and energy sectors more effectively.

Sandy Crow, CEO and Co-Founder of Convergence, conveyed enthusiasm for joining Tetra Tech, citing the opportunity to provide clients with a broader range of data-informed solutions and the potential for employee growth and knowledge sharing.

Convergence will become part of Tetra Tech's Government Services Group, although the financial terms of the acquisition have not been disclosed.

Tetra Tech is recognized for its work in water, environment, and sustainable infrastructure, employing approximately 28,000 people worldwide. The company focuses on delivering clear solutions to complex problems, covering the entire water cycle, environmental restoration, sustainable infrastructure design, and support for the clean energy transition.

This expansion of Tetra Tech's services is based on information provided by a press release statement.

InvestingPro Insights

Tetra Tech, Inc. (NASDAQ: TTEK) continues to make strategic moves that could enhance shareholder value and strengthen its market position. With the recent acquisition of Convergence Controls & Engineering, Tetra Tech is poised to broaden its service offerings in the digital water and energy sectors. Here are some insights based on InvestingPro data and tips:

InvestingPro data indicates that Tetra Tech currently holds a market capitalization of $11.34 billion, reflecting its significant presence in the consulting and engineering industry. The company's P/E ratio, as per the last twelve months leading up to Q2 2024, stands at a high 39.22, suggesting investors hold high expectations for future earnings growth. The robust revenue growth of 30.04% over the same period underlines Tetra Tech's expanding operations and potential to capitalize on new business opportunities like the Convergence acquisition.

One of the InvestingPro Tips highlights that Tetra Tech has raised its dividend for 10 consecutive years, demonstrating a commitment to returning value to shareholders. Additionally, the company's stock has experienced a strong return over the last three months, with a price total return of 19.15%. This could be indicative of investor confidence in the company's growth trajectory and its recent strategic initiatives.

For readers looking to delve deeper into Tetra Tech's financial health and future prospects, there are 15 additional InvestingPro Tips available at Investing.com/pro/TTEK. To access these valuable insights, use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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