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 11, 2014
$44.5 million Centennial Hall opens at University of Wisconsin-Eau Claire
Centennial Hall houses the College of Education and Human Sciences and consolidates teacher education. It is the first new academic building on the UW-Eau Claire campus in more than 30 years.
| Jul 11, 2014
Are these LEGO-like blocks the future of construction?
Kite Bricks proposes a more efficient way of building with its newly developed Smart Bricks system.
| Jul 10, 2014
BioSkin 'vertical sprinkler' named top technical innovation in high-rise design
BioSkin, a system of water-filled ceramic pipes that cools the exterior surface of buildings and their surrounding micro-climates, has won the 2014 Tall Building Innovation Award from the Council on Tall Buildings and Urban Habitat.
| Jul 10, 2014
Unique design of Toronto's townhome The Tree House
Plans for a new Toronto townhome brings cutting-edge design.
| Jul 10, 2014
Berkeley Lab opens 'world's most comprehensive building efficiency simulator'
DOE’s new FLEXLAB is a first-of-its-kind simulator that lets users test energy-efficient building systems individually or as an integrated system, under real-world conditions.
| Jul 10, 2014
Steinberg SF Studio launches in San Francisco, plans to transform its own office space
Grant and Saheba left their previous architectural firms, AECOM and Handel respectively, because they saw the opportunity to bring their agile, provocative design aesthetic to clients in San Francisco, Silicon Valley, and Oakland.
| Jul 9, 2014
Dragon-inspired hotel conveys Vietnamese hospitality [2014 Building Team Awards]
An international Building Team unites to create Vietnam’s first JW Marriott luxury property.
| Jul 9, 2014
Harvard Business School to build large-scale conference center
Expected to open in 2018, the facility will combine the elements of a large-scale conference center, a performance space, and an intimate community forum. The new building will be designed by Boston-based William Rawn and Associates.
| Jul 9, 2014
Top U.S. cities for design professionals
Though New York and Los Angeles are often seen as the sole hubs for design jobs, other design epicenters are scattered between the coasts.
| Jul 9, 2014
The one misstep that could be slowing your company’s growth
Change. It’s inevitable. And success for any professional may very well depend on how well we adapt to it. SPONSORED CONTENT