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.

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.

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.

Want to continue reading?
Become a Free ALM Digital Reader.

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

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.