Jacobs and Amentum Forge: In a strategic maneuver, engineering consultant Jacobs Solutions Inc (J.N) is in advanced discussions to merge its government consulting arm with private equity-backed Amentum Services Inc at a valuation surpassing $4 billion, sources revealed on Thursday.
The proposed deal involves merging Amentum with Jacobs’ Critical Mission Solutions (CMS) business, paving the way for the formation of a new publicly traded company, predominantly owned by Jacobs’ shareholders. Leveraging a Reverse Morris Trust structure, the transaction aims to provide a tax-free benefit to Jacobs shareholders, according to insiders familiar with the matter.
Negotiations, primarily between Jacobs and Amentum’s owners, American Securities and Lindsay Goldberg, are progressing, with a potential announcement slated for November 21, aligning with Jacobs’ fourth-quarter earnings report. Requests for comments from Jacobs, Amentum, Lindsay Goldberg, and American Securities remained unanswered at the time of reporting.
Jacobs’ CMS platform specializes in cybersecurity, data analytics, and software application services, catering to diverse clients in defense, intelligence, space, national security, nuclear waste, and 5G technology. The business, boasting $4.4 billion in revenue in the latest fiscal year, recently secured a $3.2 billion contract for NASA programs, including the Artemis II mission to the moon.
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Should the merger with Amentum materialize, Jacobs aims to streamline its focus on key divisions, including its people and places solutions unit, specializing in transportation and environmental consulting, and PA Consulting, a management consulting entity generating $10.5 billion in revenue.
Amentum, formed in 2020 through a $2.4 billion carve-out from Aecom by American Securities and Lindsay Goldberg, has solidified its position by acquiring rival PAE in 2021 for approximately $1.9 billion. The move resulted in a robust company with over 50,000 employees and revenue exceeding $9 billion, offering technical and advisory services to government and commercial clients.
The ongoing talks between Jacobs and Amentum signal a potential game-changer in the government consulting landscape, emphasizing strategic reshaping and heightened industry prominence. Stay tuned for comprehensive coverage as this transformative merger unfolds.
Our Reader’s Queries
Did Jacobs buy Amentum?
Jacobs is set to merge its Cyber & Intelligence government services and Critical Mission Solutions with Amentum, forming a new publicly traded company in the GovCon market. This move will create a powerful force in the industry, with Amentum’s expertise and Jacobs’ experience coming together to offer unparalleled services to government clients. The new company will be a major player in the market, with a focus on delivering innovative solutions to meet the needs of its customers. This is an exciting development for the industry, and we look forward to seeing what this new partnership will bring.
Did Jacobs poised to merge government consulting unit with Amentum?
Amentum Services Inc., a Chantilly-based engineering contractor, has announced its merger with the government consulting units of Jacobs Solutions Inc. (NYSE: J). The deal is set to bring a $1 billion cash dividend to the Dallas company upon closing.
Is Amentum announces agreement to merge with Jacobs critical mission solutions and cyber and intelligence businesses?
Amentum has recently announced a merger with Jacobs’ Critical Mission Solutions and Cyber and Intelligence businesses. This move will create a new leader in systems integration and technology solutions that will be trusted by the United States and its allies to modernize.
Is Amentum a publicly traded company?
Chantilly’s Amentum is set to become a major player in the DC-area’s public trading scene. With the merger, the company will boast a workforce of over 53,000 employees worldwide, including an impressive 27,000 individuals with government security clearances. This move is sure to solidify Amentum’s position as a top contender in the industry.