DLA Piper has advised Keolis Downer on its agreement to acquire Australian Transit Enterprises (ATE) for AU$163 million.

ATE is one of Australia's largest route, school and charter bus businesses operating a fleet of more than 900 buses in South Australia, Western Australia and Queensland.

The acquisition will further strengthen the Keolis Downer public transport network which is already established in Victoria through Yarra Trams and in Queensland through the Gold Coast Light Rail.

Completion of the acquisition is scheduled to occur in early April 2015. The acquisition is being funded through an AU$65 million bank loan from HSBC and shareholder loans from Keolis and Downer.

The DLA Piper team advising Keolis Downer was led by corporate M&A partner David Ryan and transport partner Alex Guy, along with M&A senior associate Horace Wu. Banking & Finance partner Onno Bakker is advising on the HSBC loan.