Taylor said the group felt the European market was picking up, adding that the firm would focus on growing country by country.
The acquisition will double Bovis Lend Lease's German workload and staff, making it the country's second largest project manager. The group has operated in Germany for 30 years.
Paul Bennison, Bovis Lend Lease's German managing director, said the growth in Germany would take advantage of the increased interest in PFI in the country, especially in hospitals and schools.
He said: "There is a distinct move away from traditional tendering methods in Germany, with clients, both local and global, seeking the cost security and quality benefits associated with construction and project management." Founded in 1972, IRW has 80 staff and offices in Berlin, Leipzig and Munich.