AECOM Technology Corp. will buy San Francisco-based engineering services company URS Corp., creating one of the world’s largest construction and engineering firms, the two companies announced Sunday.
“This combination creates an industry leader with the ability to deliver more capabilities from a broad global platform to reach more clients in more industry end markets,” Michael Burke, president and CEO of AECOM, said in a news release. “In one step, we will dramatically accelerate our strategy of creating an integrated delivery platform with superior capabilities to design, build, finance and operate infrastructure assets around the world.”
The deal calls for AECOM to pay around $4 billion to URS and assume $2 billion of the company’s debt. The price is approximately $56.31 per share for URS Corp.’s stock, an 8 percent increase over the stock’s Friday closing price.
When the merger is complete, AECOM would be the second largest engineering and construction firm in the U.S. behind Fluor Corp. and will provide services to industries as diverse as transportation infrastructure and governments, reported the Wall Street Journal.
In February, URS released a lower-than-expected revenue growth forecast, five months after an investor analysis predicted the company’s stock price could double in two years, prompting money to flow to the stock.
In 2013, the two companies generated a combined $19 billion in revenue and employed 95,000 people in 150 countries.