Massive construction firm AECOM Technology Corporation has made a $6 billion deal to buy San Francisco-based URS Corporation, according to the Los Angeles Times. Together, the firms will form a global giant with more than $19 billion in revenue and 95,000 employees in 150 countries.
AECOM has announced that it will pay about $4 billion for URS and will take on about $2 billion in debt. Michael S. Burke, CEO of AECOM, has said that the firm will get bigger over time, but not immediately, as it will focus on paying down its debt. AECOM will pay $56.31 per URS share, and URS stockholders will receive $33 per share, 0.734 shares of AECOM common stock for each URS share.
Burke said that he expects to add employees, specifically engineers, architects, and construction managers in the company's hometown of Los Angeles, though he didn't give specific numbers, according to the Times.
AECOM generates revenue through a number of industries: architecture, construction, management, and finance. Currently, it's working on the complex for the 2016 Summer Olympics in Rio de Janeiro, as well as a stadium for the 2018 World Cup in Moscow.
URS, on the other hand, is a major player in the energy sector, and provides integrated engineering, construction and technical services. It is managing the John F. Kennedy International Airport Redevelopment Program and the Orange County Public Schools Capital Improvement Program in Orlando.
Though the companies have competed over the years, the merger gives AECOM a stronger grip on the energy and oil industries, as well as federal contracting, which brought in 34% of URS's revenue in 2013.
"The combined company will be a premier, fully integrated infrastructure firm, serving clients across a broad range of markets, including transportation, facilities, environmental, energy, water and government," URS said in a statement on the merger. "The two companies are world leaders in the infrastructure industry."
Related Stories
Architects | Mar 10, 2022
Gyo Obata, FAIA, HOK Founding Partner, passes away at 99
Obata's career spanned six decades and included iconic projects like the National Air and Space Museum in Washington, D.C., and Community of Christ Temple in Independence, Mo.
AEC Tech Innovation | Mar 9, 2022
Meet Emerge: WSP USA's new AEC tech incubator
Pooja Jain, WSP’s VP-Strategic Innovation, discusses the pilot programs her firm’s new incubator, Emerge, has initiated with four tech startup companies. Jain speaks with BD+C's John Caulfield about the four AEC tech firms to join Cohort 1 of the firm’s incubator.
Architects | Mar 2, 2022
FGM Architects and LeMay Erickson Willcox Architects join forces
FGM Architects announced that LeMay Erickson Wilcox Architects, a 19-person architectural studio based in Reston, VA is joining their firm.
Architects | Mar 1, 2022
Alyson Steele Elected President and CEO of Quinn Evans
(2.25.22) Alyson Steele, FAIA, LEED AP, has been elected president and chief executive officer of Quinn Evans, a nationally recognized firm providing architecture, planning, interior design, landscape architecture, and historic preservation services. Steele has been with the firm since 1997 and previously served as executive vice president and chief design officer. She succeeds Larry Barr, FAIA, who will continue to serve on the board of directors.
Architects | Feb 28, 2022
JLL continues expansion in Southwest with acquisition of San Diego’s Gilliland Construction Management
JLL announced that it has completed the acquisition of Gilliland Construction Management, a leader in project and construction management services for life sciences, lab, retail, hospitality, industrial, multifamily, and office properties.
Codes and Standards | Feb 24, 2022
Most owners adapting digital workflows on projects
Owners are more deeply engaged with digital workflows than other project team members, according to a new report released by Trimble and Dodge Data & Analytics.
Multifamily Housing | Feb 24, 2022
First new, mixed-use high-rise in Detroit’s central business district in nearly 30 years opens
City Club Apartments completed two multifamily projects in 2021 in downtown Detroit including the first new, mixed-use high-rise in Detroit’s central business district in nearly 30 years.
| Feb 24, 2022
Signs of ‘Antiwork’ appear in the architecture industry
Reddit's r/Antiwork forum highlights the mounting pressures everyday workers face in a purely capitalistic society. AEC industry professionals are not immune to these pressures.
Office Buildings | Feb 23, 2022
The Beam on Farmer, Arizona’s first mass timber, multi-story office building tops out
The Beam on Farmer, Arizona’s first mass timber, multi-story office building, topped out on Feb. 10, 2022.
Codes and Standards | Feb 21, 2022
More bad news on sea level rise for U.S. coastal areas
A new government report predicts sea levels in the U.S. of 10 to 12 inches higher by 2050, with some major cities on the East and Gulf coasts experiencing damaging floods even on sunny days.
