AECOM completes acquisition of URS Corporation

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AECOM completes acquisition of URS Corporation

AECOM announced last week that the company has completed its acquisition of URS Corporation with broad support from stakeholders following approval of the merger agreement by URS' stockholders and the stock issuance proposal by AECOM's stockholders at each company's respective special stockholder meetings held on Oct. 16, 2014.

Each share of URS common stock will be exchanged in the merger for per-share consideration of either US$53.991 in cash or 1.8879 shares of AECOM common stock.

In September, AECOM announced its intention to offer US$1.6 billion in senior notes maturing in 2022 and 2024 to finance the acquisition.

The combined company will be a leading, fully integrated infrastructure and federal services provider with more than 95,000 employees in 150 countries. It would have calendar year 2013 pro forma revenues of more than US$19 billion and EBITDA of approximately US$1.3 billion.

Including the assumption of URS debt, the total enterprise value of the transaction is approximately US$6 billion.

Michael S. Burke, AECOM chief executive officer, said:

"Today is an exciting and historic day - for our industry, for AECOM and URS, and for our nearly 100,000 people around the world who are serving our clients in over 150 countries."

"Beyond the compelling benefits that this transaction creates for our combined clients, stockholders and employees, the combination of AECOM and URS dramatically accelerates our strategy of creating an integrated delivery platform with superior capabilities to design, build, finance and operate infrastructure assets around the world."

The acquisition further diversifies and broadens AECOM's market presence, as URS brings strong sector expertise in important end markets, including oil & gas, power and government services. URS also adds to AECOM's construction capabilities, deepening a core competency that AECOM will be able to leverage across its global platform.

Burke said:

"During the past three months, as we have advanced our integration planning efforts, my belief that AECOM and URS had highly complementary operations and cultures has been solidly confirmed. Our leaders have collaborated to develop a comprehensive integration plan that will leverage our greater scale across our global platform.  We are confident that we will achieve our target of US$250 million in annual cost synergies."

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