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 | Apr 2, 2021
Spring Has Sprung at Construction Specialties
Introducing a slew of sensational solids, metallic finishes that cast subtle and shimmering effects, and disposable curtains to complement our exclusive fabric line.
Multifamily Housing | Mar 30, 2021
Bipartisan ‘YIMBY’ bill would provide $1.5B in grants to spur new housing
Resources for local leaders to overcome obstacles such as density-unfriendly or discriminatory zoning.
Office Buildings | Mar 26, 2021
Finding success for downtown office space after COVID-19
Using the right planning tools can spur new uses for Class B and C commercial real estate.
Architects | Mar 25, 2021
The Weekly Show, March 25, 2021: The Just Label for AEC firms, and Perkins Eastman's Well-Platinum design studio
This week on The Weekly show, BD+C editors speak with AEC industry leaders about the Just Label from the International Living Future Institute, and the features and amenities at Perkins Eastman's Well Platinum-certified design studio.
Architects | Mar 23, 2021
Design firms KTGY, Simeone Deary Design Group unite to shape future of architectural design through experiential environments
With a bold vision to reshape how people experience spaces, residential design firm joins forces with interior design group, creating fully integrated architecture, branding, interiors and planning practice.
Architects | Mar 15, 2021
A life in architecture – Lessons from my father
A veteran designer looks back on the lessons his father, a contractor, taught him.
Architects | Mar 11, 2021
Calling all building design professionals: BD+C needs your expertise on design innovation in 2021
This new BD+C research project explores the leading drivers, sources of inspiration, and successful outcomes for design innovation projects and initiatives.
Coronavirus | Mar 11, 2021
The Weekly show, March 11, 2021: 5 building products for COVID-related conditions, and AI for MEP design
This week on The Weekly show, BD+C editors speak with AEC industry leaders about building products and systems that support COVID-related conditions, and an AI tool that automates the design of MEP systems.
Laboratories | Mar 10, 2021
8 tips for converting office space to life sciences labs
Creating a successful life sciences facility within the shell of a former office building can be much like that old “square peg round hole” paradigm. Two experts offer important advice.