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
Office Buildings | Mar 27, 2024
A new Singapore office campus inaugurates the Jurong Innovation District, a business park located in a tropical rainforest
Surbana Jurong, an urban, infrastructure and managed services consulting firm, recently opened its new headquarters in Singapore. Surbana Jurong Campus inaugurates the Jurong Innovation District, a business park set in a tropical rainforest.
Cultural Facilities | Mar 27, 2024
Kansas City’s new Sobela Ocean Aquarium home to nearly 8,000 animals in 34 habitats
Kansas City’s new Sobela Ocean Aquarium is a world-class facility home to nearly 8,000 animals in 34 habitats ranging from small tanks to a giant 400,000-gallon shark tank.
Market Data | Mar 26, 2024
Architecture firm billings see modest easing in February
Architecture firm billings continued to decline in February, with an AIA/Deltek Architecture Billings Index (ABI) score of 49.5 for the month. However, February’s score marks the most modest easing in billings since July 2023 and suggests that the recent slowdown may be receding.
Cultural Facilities | Mar 26, 2024
Renovation restores century-old Brooklyn Paramount Theater to its original use
The renovation of the iconic Brooklyn Paramount Theater restored the building to its original purpose as a movie theater and music performance venue. Long Island University had acquired the venue in the 1960s and repurposed it as the school’s basketball court.
Adaptive Reuse | Mar 26, 2024
Adaptive Reuse Scorecard released to help developers assess project viability
Lamar Johnson Collaborative announced the debut of the firm’s Adaptive Reuse Scorecard, a proprietary methodology to quickly analyze the viability of converting buildings to other uses.
Security and Life Safety | Mar 26, 2024
Safeguarding our schools: Strategies to protect students and keep campuses safe
HMC Architects' PreK-12 Principal in Charge, Sherry Sajadpour, shares insights from school security experts and advisors on PreK-12 design strategies.
Green | Mar 25, 2024
Zero-carbon multifamily development designed for transactive energy
Living EmPower House, which is set to be the first zero-carbon, replicable, and equitable multifamily development designed for transactive energy, recently was awarded a $9 million Next EPIC Grant Construction Loan from the State of California.
Museums | Mar 25, 2024
Chrysler Museum of Art’s newly expanded Perry Glass Studio will display the art of glassmaking
In Norfolk, Va., the Chrysler Museum of Art’s Perry Glass Studio, an educational facility for glassmaking, will open a new addition in May. That will be followed by a renovation of the existing building scheduled for completion in December.
Sustainability | Mar 21, 2024
World’s first TRUE-certified building project completed in California
GENESIS Marina, an expansive laboratory and office campus in Brisbane, Calif., is the world’s first Total Resource Use and Efficiency (TRUE)-certified construction endeavor. The certification recognizes projects that achieve outstanding levels of resource efficiency through waste reduction, reuse, and recycling practices.
