Calibre Group has bought a New Zealand-based engineering services company from Downer EDI for $NZ1.9 million ($A1.54 million).
Calibre said its subsidiary, Brown Consulting, would expand into New Zealand with the acquisition of 120-person consulting engineering and surveying firm, Spiire NZ.
The company said the acquisition would be funded from cash reserves and be immediately earnings per share accretive.
It is expected to increase Brown's contribution to Calibre Group's revenue from 8 per cent to 11 per cent.
It said the acquisition was in line with the company's diversification strategy.
Calibre said the acquisition would give it exposure to improving economic conditions in New Zealand, particularly the rebuilding of Christchurch following recent earthquakes and housing expansion and upgrades in Auckland.
Spiire is expected to generate about NZ$19 million ($A15.3 million) in revenue in FY2014, including an anticipated contribution of about NZ$8 million ($A6.47 million) in revenue in the five months following the settlement date of February 1.
Calibre said it would inject additional cash to upgrade Spiire's IT systems and hardware and provide further working capital to the business.
Calibre managing director Peter Reichler said the acquisition would help further expand the group's infrastructure business.
"We continue to see appropriately targeted acquisition opportunities as an attractive means of broadening Calibre's capabilities and service offering as well as diversifying our end markets," he said.
Calibre shares were up 1.5 cents, or 3.3 per cent, to 47 cents at 7.35am.