Britain's biggest builder, Balfour Beatty, said Thursday that it would acquire the US professional services business Parsons Brinckerhoff in a deal worth $626 million. London-based Balfour Beatty said it would fund the purchase of Parsons Brinckerhoff through a £353 million rights issue.

The deal will help the British builder in expanding its business in Australia, China, India and South Africa.

Balfour Beatty will also get more civil engineering projects under the US's economic stimulus package. At present, Balfour receives 24 per cent of its revenues from US business.

Balfour's CEO, Ian Tyler, said, "This is not about cost synergies, this is about growing our position in the US and growing our earnings. This is very much a long-term move for us."

Parsons Brinckerhoff, which has it's headquarter in New York, provides services like planning, administration and financial management to its clients carrying out construction projects.

Collectively the two companies, which will provide work to over 50,000 people, will generate revenues worth $17.3 billion per year.

The news of the acquisition boosted the shares in Balfour Beatty to jump to 371.3p, gaining 27.3p-a-share.

(Via TopNews United Kingdom. Contributed by Sunil Kumar)