Santa Monica-based investment fund Boxwood Merger Corp., which raised $200 million in a public offering in November, has purchased an Austin, Texas-based professional and technical services business that could capture future federal dollars for infrastructure development.
The proposed transaction, which is expected to be completed by Dec. 31, reflects an enterprise value at closing of $709.5 million for the company. Boxwood’s target, Atlas Intermediate Holdings, is a privately held professional testing, inspection, engineering and consulting services business.
Boxwood, a special purpose acquisition company — or SPAC — is led by Stephen Kadenacy, former chief operating officer of Century City-based engineering giant AECOM. Kadenacy will become chairman of Atlas as part of the deal.
SPACs merge with or acquire other businesses in order to take them public. Immediately following the transaction, Boxwood intends to change its name to Atlas Technical Consultants Inc. with its shares expected to be listed on the Nasdaq Stock Market under the ticker symbol ATCX.
Boxwood Chief Financial Officer Daniel Esters said that the plan is to pursue smaller acquisitions to bolt-on to Atlas. “We are intending for this to be the acquisition platform. The company has a number of M&A (mergers and acquisitions) in the pipeline. We see ourselves building this out into a national platform,” Esters said. “We see tremendous opportunity.”
Atlas Intermediate Holdings is well-positioned to benefit from a recently proposed $287 billion federal highway bill that would inspect and repair the nation’s roads and bridges, Esters said.
Atlas, which serves clients such as schools, hospitals, utilities and airports, also sees big growth opportunities among local governments and at least 45 states that have raised fees or taxes to fund infrastructure investment over the past five years, Esters observed. “It’s clearly part of the story at Atlas.”
Atlas is currently a portfolio company of