LOS ANGELES—AECOM Technology Corp. has enteredinto an agreement to purchase the outstanding shares of URSCorp. for $56.31 per share, a price that amounts to $4billion. AECOM will purchase the company with a combination of cashand stock as well as the assumption of URS's debt for a totaltransactional value of $6 billion.

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The purchase price is based on the closing stock price on July11, 2014 with a premium of 19% over the trailing 30-day average.According to AECOM president and CEO Michael S.Burke, the merger will produce an industry-leading firmwith a greater global reach that will benefit stockholders andemployees. Together, the company will have 95,000 employees in morethan 150 countries and a pro-forma 2013 revenue of $19 billion. Thecombined company will be headquartered in Los Angeles, where AECOMis headquartered currently, but will maintain a strong presence inSan Francisco, where URS is currently headquartered.

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Per the terms of the transaction, URS stockholders will receive$33.00 per share in cash and .734 shares of AECOM stock per URSshare owned. AECOM estimates the merged company will be accretivein GAAP earnings per share and 25% accretive to cash earnings pershare in the fiscal year of 2015. The terms of the transaction havebeen unanimously approved by the boards of both companies and aresubject to customary closing conditions. AECOM has secured acommitment from Bank of America to provide debt financing for thetransaction, which, at closing, will amount to $5.2 billion inoutstanding debt.

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The two firms will be fully integrated. URS augments AECOM'sconstruction capabilities and expertise in end markets, like oiland gas and government services.

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In addition to this merger, AECOM's recently launchedAECOM Capital is busy investing in notabledevelopment projects throughout the city by utilizing a fund model. GlobeSt.com recentlyspoke with John Livingston, AECOM Capital's CEO tofind out about the innovative business model and the company'supcoming L.A. projects.

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Kelsi Maree Borland

Kelsi Maree Borland is a freelance journalist and magazine writer based in Los Angeles, California. For more than 5 years, she has extensively reported on the commercial real estate industry, covering major deals across all commercial asset classes, investment strategy and capital markets trends, market commentary, economic trends and new technologies disrupting and revolutionizing the industry. Her work appears daily on GlobeSt.com and regularly in Real Estate Forum Magazine. As a magazine writer, she covers lifestyle and travel trends. Her work has appeared in Angeleno, Los Angeles Magazine, Travel and Leisure and more.