The boards of Aecom and URS have agreed one of the biggest construction mergers of the year so far: a friendly takeover that will cost Aecom and its stockholders $4bn in cash and shares.Â
Including the assumption of URS’ debt, the total enterprise value of the merger is estimated at $6bn.Â
Michael Burke, Aecom’s president and chief executive, who was appointed last December, said of the agreement: "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."Â
Burke will become chief executive of the combined company, which will be based in Aecom’s Los Angeles global headquarters.
Martin Koffel, the chairman and chief executive of URS, said: "Our two businesses are complementary, and our cultures are highly compatible."
Shares in URS dropped from a peak of over $55 last September to below $45 this June, then rose again due to speculation of a merger. Aecom and URS are by revenue the world’s first and third largest engineering design companies.
Last week ACE International Consultants joined Aecom as its international development business. The terms of this transaction were not disclosed.
Aecom won contracts last year in Zimbabwe, Qatar and South Africa.