TGM employs 130 people and specialises in the approval, design and completion of urban development, building and infrastructure projects.
On completion of the transaction, Cardno will pay up to $21.6 million in cash for TGM, with 20 per cent of the purchase price subject to achieving performance targets over the next two years.
The acquisition will be funded by a combination of cash resources and financing facilities.
TGM is expected to contribute approximately $23 million in revenue over the next twelve months.
Shares in Cardno (ASX:CDD) closed up 4.48 per cent $1.05 yesterday.