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
| Aug 11, 2010
Gensler among eight teams named finalists in 'classroom of the future' design competition
Eight teams were recognized today as finalists of the 2009 Open Architecture Challenge: Classroom. Finalists submitted designs ranging from an outdoor classroom for children in inner-city Chicago, learning spaces for the children of salt pan workers in India, safe spaces for youth in Bogota, Colombia and a bamboo classroom in the Himalayan mountains.
| Aug 11, 2010
F&S Partners merges with SmithGroup
F&S Partners, a Dallas architecture firm specializing in the design of educational, recreational, and religious projects, has merged with SmithGroup, a top 10 U.S. architecture/engineering firm. The 40-person office in Dallas will carry the name SmithGroup/F&S.
| Aug 11, 2010
Will Alsop to head up new RMJM studio
Will Alsop, the internationally acclaimed British architect and designer of the Glenwood Waterfront project on the Hudson River, is to turn his attention once again to the U.S. after announcing he is to create a studio called “Will Alsop at RMJM,” as part of the RMJM worldwide architectural firm.
| Aug 11, 2010
AECOM, WATG top BD+C's ranking of the nation's 75 largest hotel design firms
A ranking of the Top 75 Hotel Design Firms based on Building Design+Construction's 2009 Giants 300 survey. For more Giants 300 rankings, visit http://www.BDCnetwork.com/Giants
| Aug 11, 2010
Parsons Brinckerhoff, Dewberry among nation's largest multifamily design firms, according to BD+C's Giants 300 report
A ranking of the Top 75 Multifamily Design Firms based on Building Design+Construction's 2009 Giants 300 survey. For more Giants 300 rankings, visit /giants
| Aug 11, 2010
USGBC’s Greenbuild 2009 brings global ideas to local main streets
Save the planet with indigenous knowledge. Make permanent water part of your life. Dive deep water for clues to environmental success. Connect site selection to successful creative concepting. Explore the unknown with Discovery Channel’s best known guide. These are but a few of the big ideas participants can connect to at USGBC’s Greenbuild International Conference and Expo, taking place on November 11-13, 2009 in Phoenix, Ariz.
| Aug 11, 2010
Goettsch Partners wins design competition for Soochow Securities HQ in China
Goettsch Partners (GP) has been selected as the winning firm in the competition to design the Soochow Securities Headquarters, the new office and stock exchange building for Soochow Securities Co. Ltd. The 21-story, 441,300-square-foot project includes 344,400 square feet of office space, an 86,100-square-foot stock exchange, meeting rooms, classrooms, a cafeteria, and underground parking for 400 cars and 800 bicycles.