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
| Feb 8, 2012
Mega-malls expanding internationally
Historically, malls have always been the icons of America – the first mall ever was built in Minneapolis in 1956.
| Feb 8, 2012
World’s tallest solar PV-installation
The solar array is at the elevation of 737 feet, making the building the tallest in the world with a solar PV-installation on its roof.
| Feb 7, 2012
AIA introduces seven new contract documents to Documents-On-Demand service??
AIA Contract Documents are widely-used standard form contracts among the building industry to support construction and design projects.
| Feb 7, 2012
Data center construction boom driven by healthcare and technology
The study includes insight and perspective regarding current investment plans of stakeholders, potential challenges to the data center boom, data center efficiency levels, the impact of new designs and technologies, and delivery methods.
| Feb 7, 2012
Kawneer and Traco combine portfolios
Portfolio includes curtain wall systems, windows, entrances and framing systems.
| Feb 7, 2012
Lubbers promoted to creative director at Wight & Co.
Lubbers has been instrumental in many recent high profile Wight projects, including the College of DuPage Student Resource Center, Seaton Computing Center, The Adler Planetarium Sky Theater transformation and UNO Charter Schools.
| Feb 7, 2012
Shepley Bulfinch opens San Francisco office
This expansion establishes a physical presence that builds on a portfolio of work for institutional clients on the West Coast, dating to the development of the original Stanford University campus in 1891
| Feb 7, 2012
Thornton Tomasetti opens new office in Denver
The firm, which now has 25 offices internationally, opened the new office to better serve current and potential clients in the western Central region and Mountain States.
| Feb 6, 2012
Slight increase in nonres construction spending expected in 2012, growth projected for 2013
Commercial sector expected to lead real estate recovery.