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
| Oct 12, 2011
Bulley & Andrews celebrates 120 years of construction
The family-owned and operated general contractor attributes this significant milestone to the strong foundation built decades ago on honesty, integrity, and service in construction.
| Oct 12, 2011
Consigli Construction breaks ground for Bigelow Laboratory Center for Ocean Health
Consigli to build third phase of 64-acre Ocean Science and Education Campus, design by WBRC Architects , engineers in association with Perkins + Will
| Oct 11, 2011
AIA introduces five new documents for use on sustainable projects
These new documents will be available in the first quarter of 2012 as part of the new AIA Contract Documents service and AIA Documents on Demand.
| Oct 11, 2011
Pink light bulbs donated to Society of Memorial Sloan-Kettering Cancer Center
For every Bulbrite Pink Light Bulb that is purchased through the Cancer Center Thrift Shop, 100% of the proceeds will be donated to help support breast cancer research, education, screening, and treatment.
| Oct 11, 2011
ThyssenKrupp elevator cabs validated by UL Environment
The conclusive and independent third-party validation process is another step toward a green product line.
| Oct 11, 2011
Ballard Spahr launches real estate recovery group
The new group represents an expansion of the company’s Distressed Real Estate Initiative, which was launched in 2008 to help clients throughout the country plan, adapt and prosper in a challenging economic environment.
| Oct 11, 2011
Onex completes investment in JELD-WEN
With the completion of the JELD-WEN investment, Onex Partners III is approximately 40% invested.
| Oct 7, 2011
GREENBUILD 2011: Demand response partnership program announced at Greenbuild 2011
Program will use USGBC’s newly revised LEED Demand Response credit as an implementation guideline and leverage its relationships with the building community to foster adoption and participation in existing utility and solution provider demand response offerings.
| Oct 7, 2011
GREENBUILD 2011: Otis Elevator announces new contracts for sustainable building projects
Wins reinforce Otis’ position as leader in energy-efficient products.
| Oct 7, 2011
GREENBUILD 2011: UL Environment releases industry-wide sustainability requirements for doors
ASSA ABLOY Trio-E door is the first to be certified to these sustainability requirements.