Costain, an engineering solutions provider, has closed the acquisition of Simulation Systems Limited (SSL), a firm that offers technology-based solutions for the highways sector.

SSL was purchased for  £17m on a debt free / cash free and normalised working capital basis. This amount was drawn from Costain’s existing cash and debt facilities.

Established in 1979, SSL has created a blue-chip client base that includes Highways England, Transport for London, the Scottish and Welsh governments and a number of English county and city councils.

"This transaction will further broaden our ability to deliver innovative technology-based solutions to meet the increasingly complex requirements of our major blue chip customers in energy, water and transportation."

The company offers a wide range of hardware and software-based solutions for traffic monitoring and management.

The acquisition will strengthen Costain's presence in the market and enhance its technology capability.

Costain chief executive officer Andrew Wyllie said: “We are delighted to announce the acquisition of SSL which is in-line with our stated objective of accelerating the growth of business through a combination of organic and acquisitive growth.

“This transaction will further broaden our ability to deliver innovative technology-based solutions to meet the increasingly complex requirements of our major blue chip customers in energy, water and transportation.”

SSL will be fully integrated into the Costain's infrastructure division in the current financial year.

In the financial year ended 31 March 2015, SSL posted revenues of £15.1m and EBITDA of £2m.