Aecom to acquire URS

Engineering design company Aecom has agreed to acquire fellow US consultant engineer URS Corporation for US$ 4 billion in cash and shares. Aecom will also assume URS’s debt, taking the total transaction value to some US$ 6 billion.

The combined company will have more than 95,000 employees in 150 countries and annual revenues in the region of US$ 19 billion.

Aecom president & CEO Michael S. Burke said, “This combination creates an industry leader with the ability to deliver more capabilities from a broad platform to reach more clients in more industry end markets. IN one step we will dramatically accelerate our strategy of creating an integrated delivery platform with superior capabilities to design, build, finance and operate infrastructure assets around the world.”

URS chairman & CEO Martin M. Koffel added, “Our two businesses are complementary and our cultures are highly compatible.”

Under the terms of the deal, Aecom will pay US$ 56.31 per URS share, which represents a 19% premium on the 30-day average share price leading up to the merger announcement on July 11. This will be made up of US$ 33.00 in cash and 0.734 AECOM shares as a default, but URS shareholders can elect to receive all cash or all shares for their existing stock. Aecom said it was aiming for an overall mix of 59% cash and 41% shares in the transaction.

Both companies’ boards have approved the deal. It is now subject to regulatory and shareholder approval, with financial close expected in October.