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
| Jul 26, 2016
Top 80 Architecture/Engineering firms
Stantec, HOK, and Callison RTKL once again top Building Design+Construction's 2016 ranking of the largest architecture/engineering firms in the United States.
| Jul 25, 2016
Top 35 Engineering/Architecture Firms
AECOM, Jacobs, and Thornton Tomasetti head Building Design+Construction's 2016 ranking of the largest engineering/architecture firms in the United States.
| Jul 25, 2016
Top 100 Architecture Firms
Gensler surpasses $1.1 billion in revenue, topping Building Design+Construction’s annual ranking of the nation’s largest architecture firms, as reported in the 2016 Giants 300 Report.
Healthcare Facilities | Jul 25, 2016
AIA selects seven winners of healthcare building design award
The National Healthcare Design Awards recognizes functional hospital projects that solve aesthetic, civic, urban, and social concerns. Recipients were selected in three categories this year.
Industrial Facilities | Jul 25, 2016
Snøhetta, Bjarke Ingels among four finalists for S.Pellegrino bottling plant design
A committee will evaluate proposals in September.
Architects | Jul 22, 2016
5 creative approaches to finish standards
With the right mindset, standards can produce great design for healthcare facilities, as VOA's Candace Small explores.
Retail Centers | Jul 21, 2016
MVRDV designs Seoul entertainment district with gold entrance and curtain façade
The 9,800-sm complex will have retail and nightclub space. A plaza separates the two concrete buildings.
Healthcare Facilities | Jul 20, 2016
Process mapping simplifies healthcare design
Charting procedures and highlighting improvement opportunities can lead to developing effective design strategy simulations. GS&P’s Ray Wong writes that process mapping adds value to a project and bolsters team and stakeholder collaboration.
Architects | Jul 20, 2016
AIA: Architecture Billings Index remains on solid footing
The June ABI score was down from May, but the figure was positive for the fifth consecutive month.
| Jul 19, 2016
2016 GIANTS 300 REPORT: Ranking the nation's largest architecture, engineering, and construction firms
Now in its 40th year, BD+C’s annual Giants 300 report ranks AEC firms by discipline and across more than 20 building sectors and specialty services.