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 24, 2011
New reports chart path to net-zero-energy commercial buildings
Two new reports from the Zero Energy Commercial Buildings Consortium (CBC) on achieving net-zero-energy use in commercial buildings say that high levels of energy efficiency are the first, largest, and most important step on the way to net-zero.
| Feb 24, 2011
Lending revives stalled projects
An influx of fresh capital into U.S. commercial real estate is bringing some long-stalled development projects back to life and launching new construction of apartments, office buildings and shopping centers, according to a Wall Street Journal article.
| Feb 23, 2011
London 2012: What Olympic Park looks like today
London 2012 released a series of aerial images that show progress at Olympic Park, including a completed roof on the stadium (where seats are already installed), tile work at the aquatic centre, and structural work complete on more than a quarter of residential projects at Olympic Village.
| Feb 23, 2011
Call for Entries: 2011 Building Team Awards, Deadline: March 25, 2011
The 14th Annual Building Team Awards recognizes newly built projects that exhibit architectural and construction excellence—and best exemplify the collaboration of the Building Team, including the owner, architect, engineer, and contractor.
| Feb 23, 2011
The library is dead, long live the library
The Society for College and University Planning asked its members to voice their thoughts on the possible death of academic libraries. And many did. The good news? It's not all bad news. A summary of their members' comments appears on the SCUP blog.
| Feb 23, 2011
Data center trends: green design, technology upgrades
While green data centers will continue to be a trend within the industry, technology is also driving infrastructure upgrades that have never been seen before, according to the 2011 Data Center Technical Market Report from Environmental Systems Design. The report also includes an overview of the national data center market, construction costs, blackouts and disaster prevention, and site selection.
| Feb 23, 2011
“School of Tomorrow” student design competition winners selected
The American Institute of Architecture Students (AIAS) and Kawneer Company, Inc. announced the winners of the “Schools of Tomorrow” student design competition. The Kawneer-sponsored competition, now in its fifth year, challenged students to learn about building materials, specifically architectural aluminum building products and systems in the design of a modern and creative school for students ranging from kindergarten to sixth grade. Ball State University’s Susan Butts was awarded first place and $2,500 for “Propel Elementary School.”
| Feb 23, 2011
Barbie's newest career: Architect
Mattel is introducing Architect Barbie this fall, following a campaign that started in 2002 to give the iconic blond a design job. The doll comes in a signature pink outfit, but if she's truly hoping to pass an an architect, shouldn't she be wearing all black?
| Feb 23, 2011
Green building on the chopping block in House spending measure
Bryan Howard, Legislative Director of the U.S. Green Building Council, blogs about proposed GOP budget cuts that could impact green building in the commercial sector.
| Feb 23, 2011
Architecture Billings hold steady after two months of improving conditions
After showing positive momentum during the fourth quarter of 2010, the Architecture Billings Index (ABI) slipped almost four points in January. The January ABI score was 50.0, which is down from a reading of 53.9 the previous month, but still reflects stable demand for design services. Any score above 50 indicates an increase in billings.