Massive construction firm AECOM Technology Corporation has made a $6 billion deal to buy San Francisco-based URS Corporation, according to the Los Angeles Times. Together, the firms will form a global giant with more than $19 billion in revenue and 95,000 employees in 150 countries.
AECOM has announced that it will pay about $4 billion for URS and will take on about $2 billion in debt. Michael S. Burke, CEO of AECOM, has said that the firm will get bigger over time, but not immediately, as it will focus on paying down its debt. AECOM will pay $56.31 per URS share, and URS stockholders will receive $33 per share, 0.734 shares of AECOM common stock for each URS share.
Burke said that he expects to add employees, specifically engineers, architects, and construction managers in the company's hometown of Los Angeles, though he didn't give specific numbers, according to the Times.
AECOM generates revenue through a number of industries: architecture, construction, management, and finance. Currently, it's working on the complex for the 2016 Summer Olympics in Rio de Janeiro, as well as a stadium for the 2018 World Cup in Moscow.
URS, on the other hand, is a major player in the energy sector, and provides integrated engineering, construction and technical services. It is managing the John F. Kennedy International Airport Redevelopment Program and the Orange County Public Schools Capital Improvement Program in Orlando.
Though the companies have competed over the years, the merger gives AECOM a stronger grip on the energy and oil industries, as well as federal contracting, which brought in 34% of URS's revenue in 2013.
"The combined company will be a premier, fully integrated infrastructure firm, serving clients across a broad range of markets, including transportation, facilities, environmental, energy, water and government," URS said in a statement on the merger. "The two companies are world leaders in the infrastructure industry."
Related Stories
Cultural Facilities | Aug 21, 2024
Baltimore’s National Aquarium opens 10,000-sf floating wetland that mimics the harbor’s original tidal marsh habitat
The National Aquarium in Baltimore has opened the National Aquarium Harbor Wetland, a 10,000-sf floating wetland that mimics the Inner Harbor’s original Chesapeake Bay tidal marsh habitat. Located between Piers 3 and 4 on Baltimore’s Inner Harbor, the $14 million project features more than 32,000 native shrubs and marsh grasses.
Mixed-Use | Aug 21, 2024
Adaptive reuse of a Sears store becomes luxury mixed-use housing
6 Corners Lofts at 4714 W Irving Park Road, Chicago, Ill., opened in March of 2024 as a 394,000-sf adaptive reuse project born out of a former Sears store.
Building Materials | Aug 19, 2024
Federal 'buy clean' construction materials label program unveiled
The U.S. Environmental Protection Agency announced a plan for implementing a new label program to boost American production of more climate-friendly construction materials and products. The label program will prioritize steel, glass, asphalt and concrete.
Museums | Aug 19, 2024
The Tampa Museum of Art will soon undergo a $110 million expansion
In Tampa, Fla., the Tampa Museum of Art will soon undergo a 77,904-sf Centennial Expansion project. The museum plans to reach its $110 million fundraising goal by late 2024 or early 2025 and then break ground. Designed by Weiss/Manfredi, and with construction manager The Beck Group, the expansion will redefine the museum’s surrounding site.
AEC Tech | Aug 19, 2024
Harnessing AI to revolutionize architectural design and creativity
Architects are wondering if AI will replace us. For Vessel, the gains offset the fear. We believe there is wisdom in the unattributed quote, “You won’t lose your job to AI. You will lose your job to someone using AI.”
Reconstruction & Renovation | Aug 19, 2024
Movement to protect historic buildings raises sharp criticism
While the movement to preserve historic buildings has widespread support, it also has some sharp critics with well-funded opposition groups springing up in recent years. Some opponents are linked to the Stand Together Foundation, founded and bankrolled by the Koch family’s conservative philanthropic organization, according to a column in Governing magazine.
Government Buildings | Aug 19, 2024
GSA posts new RFI for enabling energy efficiency, decarbonization in commercial buildings
The U.S. General Services Administration (GSA), in collaboration with the U.S. Department of Energy, recently released a new Request For Information (RFI) focused on enabling energy efficiency and decarbonization in commercial buildings. GSA wants to test innovative technologies through GSA’s Center for Emerging Building Technologies.
MFPRO+ New Projects | Aug 16, 2024
At 60 stories, the Paramount multifamily development will stand as Nashville’s tallest high rise
When complete, the 60-story Paramount building, at 750 feet high, will be the tallest high rise tower in Nashville, Tenn., surpassing the city’s current record holder, the 617-foot AT&T Building. The $390 million Paramount project recently launched condo sales after securing more than $230 million in construction financing.
Urban Planning | Aug 15, 2024
New York City begins first large-scale porous pavement installation
New York City is installing its first large-scale porous pavement installation along seven miles of roadway in Brooklyn. The project will keep 35 million gallons of stormwater out of the combined sewer system each year, according to a news release.
Urban Planning | Aug 15, 2024
The magic of L.A.’s Melrose Mile
Great streets are generally not initially curated or willed into being. Rather, they emerge organically from unintentional synergies of commercial, business, cultural and economic drivers. L.A.’s Melrose Avenue is a prime example.
