Ricardo PLC on Wednesday said it bought a majority shareholding in environmental modelling tools firm E3-Modelling SA for a consideration of £24 million.

The West Sussex, England-based environmental and engineering consulting company said the 93% stake was for £19 million payable on completion alongside a deferred earn out of £5 million to be paid after December 31, subject to the achievement of certain performance metrics.

It said E3-Modelling provides digital modelling capabilities across the markets in which Ricardo also serves, making the acquisition complementary to Ricardo’s position in the energy, environment and mobility agendas.

Ricardo added its global footprint, services and diversified market expansion would combine with E3M’s capabilities and expertise in supporting additional value creation for a global client base focused on transitioning to a low-carbon future.

To date, the use of E3M’s models has largely focused on Europe, Ricardo said. It pointed to E3M carrying out consultancy on ‘every major European energy and climate policy initiative’, and that its large-scale energy, economy and transport models have been applied ‘at the very heart’ of European Commission policymaking.

‘We already have a strong working relationship with E3-Modelling having worked together for over 10 years, and this acquisition is a natural advancement, combining our skillsets to offer a transformational contribution to Ricardo’s energy and environmental services portfolio,’ said Ricardo Chief Executive Officer Graham Ritchie.

‘It provides an opportunity to deliver repeatable digital models focused on energy markets, climate change and the decarbonisation of transport to governments and corporate clients globally.’

Shares in Ricardo were up 1.0% to 515.11 pence each in London on Wednesday before midday.

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