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.