AECOM Reaches Agreement to Acquire URS

AECOM Technology Corporation has reached an agreement with URS Corporation to acquire all outstanding URS shares for a total of $4 billion, or $56.31 per share, the companies announced yesterday. The share price is 19 percent higher than URS’ 30-day average closing price. Adding in the assumption of URS debt, the total value of the transaction stands at about $6 billion.  "This is a compelling strategic combination that we believe will benefit our clients, stockholders and employees,” URS CEO Martin Koffel said in a statement. “URS stockholders will receive significant, immediate value from the transaction and will be able to participate in the future prospects of the combined company, which we expect will be better positioned to compete for major, complex projects across a diverse range of end markets and geographic regions." The new company would have 95,000 employees in 150 countries with 2013 revenues of more than $19 billion, according to a statement by the companies.

 

Under the deal, which is subject to the approval of the shareholders and Boards of Directors of both companies, AECOM CEO Michael S. Burke will be the combined company’s CEO while AECOM Executive Chairman John M. Dionisio will be chairman of the board. The company’s management structure “will include proven senior leaders from both URS and AECOM,” according to a joint statement. Additionally, “AECOM will elect two URS board members to the AECOM Board of Directors.” The companies hope to close the deal this October. AECOM and URS plan to hold a joint conference call at 8 a.m. today that will be webcast at www.aecom.com and www.urs.com.