Mine camp builder OTOC has taken the first step towards expanding its surveying business nationally by buying a Victorian firm for up to $17 million.
OTOC has made a deal to acquire Bosco Jonson, a Melbourne-based surveying, town planning and urban design company with about 80 staff.
The WA company will pay upfront $13 million in cash and $1 million in OTOC shares. Up to $3 million more in cash is subject the business clearing financial hurdles.
It is considering options for funding the up-front consideration, including using cash and existing debt facilities.
OTOC's surveying consultancy operates in Perth and regional WA with about 150 people.
The company said it would gain enhanced scale in surveying, town and urban planning, as well as entry to the strong Victorian urban development market.
"The acquisition of Bosco Jonson provides OTOC with an ideal first step in terms of size, existing capabilities and geographic reach in our strategic goal of creating a premium national surveying business," chief executive Simon Thomas said.
OTOC said the Victorian firm had a blue-chip client base and had consistently delivered strong financial results.
Founders Frank Bosco and Rob Jonson will stay with the business along with two other principals.
OTOC's shares were up 2.5Â¢, or 17 per cent, to 17.5 cents at 11.03am.