News Column

United States : AECOM takes over URS CORPORATION for $6 BILLION

July 15, 2014

Los Angeles-based AECOM announced the acquisition of URS Corporation in a cash and stock deal worth $4 billion with its debts valuing around $2 billion.

With this acquisition, AECOM will create a fully-integrated infrastructure company and accelerate its strategy of offering an integrated-delivery model by adding key capabilities and expertise in markets including construction, oil & gas, power and government services.

The agreement will see URS stockholders getting $33.00 in cash and 0.734 shares of Aecom common stock for each URS share held by them.

Following the completion of the deal, Aecom stockholders will continue their shares and URS stockholders will have about 35% of the combined company.

It is stated that the combined company will have existence in 150 countries and about 95,000 employees.

The company has received a firm commitment from Bank of America Corp. (BAC) to provide debt financing in connection with the transaction. The company will use the proceeds to refinance a part of existing Aecom and URS debt as well as to finance the cash consideration to be paid in the transaction, said Aecom.

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Source: TendersInfo (India)

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