The engineering firm will pay $6 million to snare $20 million-a-year firm, IT Environmental (Australia), cementing it as one of Australia's largest consulting service providers to the Asia Pacific region.
Coffey said ITE was a market leader in the assessment and remediation of contaminated land and groundwater. The company had a strong position in the petroleum, chemical, manufacturing and general industrial markets.
"This acquisition brings us considerable competitive advantage," said Coffey International managing director Roger Olds. "Strategically, it brings us three benefits – firstly, access to key clients, including oil companies with sizeable contracts in South-East Asia and potential for growth in central Asia and the Middle East, where Coffey has been developing opportunities.
"This strengthening of our general industrial client base will help Coffey to diversify its client base.
"Our considerable combined human resources, our spread of offices and projects offshore and our enhanced service offering will position us well to market more aggressively in these offshore markets as well as within Australia and the Pacific.
"Secondly, our combined skills, experience and businesses will make us overall market leaders in the contaminated land consulting and specialised remediation arena.
"Thirdly, ITE has developed excellent systems to undertake this kind of work in an effective and profitable manner. Combined with Coffey's already impressive reputation and systems, we will create a new leader in the environmental consulting arena."
Olds said over the next 12 months, the company would look at the potential for integrating the two companies.
"Due to the nature and size of the ITE business, we have no immediate plans to integrate the operations," he said.
"Instead, we will focus on supporting ITE's current growth while maximising the opportunities for cross-selling and sharing of staff."
The acquisition is expected to be finalised this week.
Coffey International has two divisions, including its consulting business comprising Coffey Geosciences, Control Testing Laboratories, Water Studies and Soil & Rock Engineering, and international development business, encompassing SAGRIC International, Coffey MPW and Landmarc.
In the last financial year, Coffey generated $38 million revenue in Australia, $38 million in South-East Asia, $21 million in the Pacific and $13 million in China, Sri Lanka, India and the Middle East.
