A consortium of Australian bus operator Kinetic and the infrastructure solutions provider Globalvia has agreed to acquire UK-based transport company Go-Ahead Group for $789m (£647.7m).

As agreed, Go-Ahead shareholders will receive 1,500 pence (p) for each share including 1,450p in cash and a special dividend of 50p per share.

Go-Ahead agreed to advance with the deal after its directors concluded that the terms of acquisition are fair and reasonable.

Commenting on the transaction, Go-Ahead Group CEO Christian Schreyer said: “This is a compelling offer, which combines an attractive valuation for shareholders with bright prospects for Go-Ahead’s operations and colleagues around the world.

“We have confidence in Go-Ahead’s future as an independent business, but see that being part of a truly global mass transit platform will yield exciting opportunities. We welcome the commitment of Kinetic and Globalvia to invest in the decarbonisation and digitalisation of our operations, and to support our strategy, The Next Billion Journeys.”

As an international transport company, Go-Ahead serves bus and rail markets in the UK, Singapore, Ireland, Germany, Sweden and Norway.

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By GlobalData

It is one of the largest operators of bus services in London and operates a fleet of more than 6,000 buses across England.

In the rail sector, the company owns a 65% stake in UK-based train operating company Govia Thameslink Railway (GTR), which operates Southern, Gatwick Express, Great Northern and Thameslink services.

Additionally, Go-Ahead runs rail services in Germany and Norway.

Kinetic and Globalvia have established a new limited company called Bidco for the acquisition.

The deal is expected to close in October 2022, subject to the completion of certain conditions, including the approval of Go-Ahead shareholders.

Earlier, Go-Ahead turned down multiple takeover offers. Recently, it also received a bid from Kelsian Group.

In March this year, another UK-based transport group Stagecoach accepted a $780m (£594.9m) bid from Inframobility UK Bidco.