Question-and-Answer Session
Operator
(Operator Instructions)Your first question comes from John Quealy - Canaccord Adams
John Quealy -Canaccord Adams
Just a couple things on the deal, did you disclose price on that or price metrics? Was it in range with standard E and C multiples?
Dan Batrack
John we did not disclose the terms of the acquisition and for competitive purposes we would elect not to do that, but I would indicate that it is inline with the multiples that we have paid for other acquisitions.
John Quealy -Canaccord Adams
In terms of backlog, what show you look for in Q2? What was the relative contribution from this business?
Dan Batrack
3 to 5 months.
John Quealy -Canaccord Adams
So, in dollars of 3 months to 5 months of business would be in backlog at anyone given time?
Dan Batrack
Let me backup. The backlog that we have is funded and authorized, the $1.7 plus billion. About 75% to 80% of that amount would be expended over the next 12 months and the remaining 20% to 25% would be expended over roughly the next six months. So, most all of the backlog would be expended or is slated for completion of the work in the next 18 months. Does that answer the question?
John Quealy -Canaccord Adams
It doesn’t actually, I should have been clear. I was asking about the acquisition, how much backlog would that add upon consolidation?
David King
I am sorry the backlog, because of the consulting and engineering aspect of the business they are mostly commercial in nature. It is a much shorter amount of contract duration and so typically three to four months of their annual revenues are in backlog. So, relative compared to Tetra Tech is a much smaller percentage.
John Quealy -Canaccord Adams
Okay and then just two more housekeeping questions on the acquisition. Was it primarily geography or business line that was attractive here?
Dan Batrack
Both, we looked a lot of companies and this is one that they hit it right. One of all the locations in the world, we were anxious to get located in it was Canada for some simple reasons like language, culture, time zone some practical things. Two great end markets and great clients. They have a lot of natural resource work. They do lots of work in the nuclear industry for the energy, which is a major component of their work. They provide a lot of water resource work and natural resource mining brings as lot of new mining client. So its clients, its technical service and its geography really hit all of the areas that we have hoped to add to the company.
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