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
K-12 Schools | Feb 26, 2015
D.C.'s Dunbar High School is world's highest-scoring LEED school, earns 91% of base credits
The 280,000-sf school achieved 91 points, out of 100 base points possible for LEED, making it the highest-scoring school in the world certified under USGBC’s LEED for Schools-New Construction system.
K-12 Schools | Feb 25, 2015
Polish architect designs modular ‘kids city’ kindergarten using shipping container frames
Forget the retrofit of a shipping container into a building for one moment. Designboom showcases the plans of Polish architect Adam Wiercinski to use just the recycled frames of containers to construct a “kids city.”
Cultural Facilities | Feb 25, 2015
Bjarke Ingels designs geodesic dome for energy production, community use
A new building in Uppsala, Sweden, will serve as a power plant during the winter and a venue for shows, festivals, and music events during the warm months.
Cultural Facilities | Feb 25, 2015
Edmonton considering 'freezeway' to embrace winter
If the new Edmonton Freezeway is constructed, residents will have an 11-km course that winds through the city and allows them to skate to work, school, and other city activities.
Building Team | Feb 24, 2015
Call for entries: 2015 Giants 300 survey
The annual Giants 300 Report ranks the top AEC firms in commercial construction, by revenue.
Industrial Facilities | Feb 24, 2015
Starchitecture meets agriculture: OMA unveils design for Kentucky community farming facility
The $460 million Food Port project will define a new model for the relationship between consumer and producer.
University Buildings | Feb 23, 2015
Future-proofing educational institutions: 5 trends to consider
In response to rapidly changing conditions in K-12 and higher education, institutions and school districts should consider these five trends to ensure a productive, educated future.
Office Buildings | Feb 23, 2015
The importance of quiet and the consequences of distraction
Recent work style studies show that the average knowledge worker spends 25-35% of their time doing heads-down focused work. Once thrown off track, it can take some 23 minutes for a worker to return to the original task.
Modular Building | Feb 23, 2015
Edge construction: The future of modular
Can innovative project delivery methods, namely modular construction, bring down costs and offer a solution for housing in urban markets? FXFOWLE’s David Wallance discusses the possibilities for modular.
| Feb 23, 2015
6 trends changing the way city dwellers live
Across the cultural grid, from food to retail to transportation, America's urban areas are already undergoing a major metamorphosis. Here are the six major trends shaping our cities, from Fast Company.