# AECOM to buy URS Corp.



## Road Guy (Jul 15, 2014)

In another decade there may just be 2 or 3 "big firms" left...

&amp; with all these big acquisitions I havent really seen the smaller - mid size firms increasing to fill the void..

http://www.bloomberg.com/news/2014-07-13/aecom-technology-agrees-to-buy-urs-for-about-4-billion.html

Aecom Technology Corp. (ACM) agreed to acquire URS Corp. (URS), the engineering and construction-management company targeted by activist hedge fund Jana Partners LLC, for about $4 billion, gaining new services in markets like oil and gas.

Aecom will pay the equivalent of $56.31 a share for URS in the cash-and-stock deal, or about 19 percent more than its 30-day average closing price, the companies said in a statement yesterday. Including debt, the value of the transaction would be about $6 billion. The per-share price is about 8.2 percent more than URS’s July 11 close.

The transaction brings together companies that provide support and planning services for governments and large engineering and construction projects in the U.S., Canada and other countries. It will combine Aecom’s reach overseas with URS’s services such as pipeline repair.

“You couldn’t have had a better marriage of two companies that complement each other’s skill sets, scope and capabilities so well,” said Will Gabrielski, an analyst at Stephens Inc. in New York.

“They both have the federal government as a large customer, but there is very little overlap in what they do,” he said. “It’s a great value for both companies.”

Photographer: Andrew Harrer/Bloomberg

“The days when our clients would hire three or four engineering firm is over,” URS Corp. CEO Martin Koffel said on today’s conference call. “It’s one-stop shopping.” Close
“The days when our clients would hire three or four engineering firm is over,” URS... Read More




Gabrielski rates the shares overweight. Aecom shares rose 3.9 percent in New York to $32.99 at 10:17 in New York and URS increased 9 percent to $56.71.


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## knight1fox3 (Jul 15, 2014)

I've worked with both firms in nuclear and non-nuclear applications. Interesting acquisition there.


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## envirotex (Jul 15, 2014)

Hmmm...there is very little overlap in what we do...

not so sure about that.


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## blybrook PE (Jul 15, 2014)

I almost took a position with URS. Am still getting hounded by their recruiters too.

Current office was happy with the merger as it removes one competitor from the ring.


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## Road Guy (Jul 15, 2014)

thats a situation when you never want to be "too high up" when those mergers happen, only room for so many senior VP's

I helped open the current AECOM atlanta office, we did pretty well, now its run by a bunch of dicks though...it was DMJM Harris back then (owned by AECOM at the time) overall I liked the company when I was there (2 years)

URS owns a 12 story building across from us here in Denver (like an entire building) ..


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## Ble_PE (Jul 15, 2014)

URS has a large office just to the south of here and I know that they had some lay offs recently. I'm hearing that they may have some more, so I wonder if this has anything to do with that.


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## Road Guy (Jul 15, 2014)

there stock took a serious nose dive about 8 months ago..


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## Dexman PE PMP (Jul 15, 2014)

AECOM is the designer on the project I'm currently working on. Know a few guys who work (or used to work) with URS. Pretty much my only experience with either of them.


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## chaosiscash (Jul 15, 2014)

Know some URS guys locally around here. Don't know anything about AECOM. Its pretty much a Bechtel world around here.


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## Supe (Jul 15, 2014)

I'd have sooner expected that acquisition to work the other way around. Problem is, there is so little new construction going on right now for big ticket jobs, that it's a utility's market out there right now, and companies are barely above breaking even on outage work.


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## knight1fox3 (Jul 15, 2014)

Road Guy said:


> URS owns a 12 story building across from us here in Denver (like an entire building) ..


I've actually been to that particular one. Was one of my first crane projects and we met there for the kick-off.



chaosiscash said:


> Know some URS guys locally around here. Don't know anything about AECOM. Its pretty much a Bechtel world around here.


AECOM does a bit of work here at some of the local non-nuclear power utilities.

Bechtel......


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## envirotex (Jul 15, 2014)

Supe said:


> I'd have sooner expected that acquisition to work the other way around. Problem is, there is so little new construction going on right now for big ticket jobs, that it's a utility's market out there right now, and companies are barely above breaking even on outage work.


Maybe that's what the deal is...URS does a lot of O&amp;M and A&amp;E, not so much D&amp;B.


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## dmairena803 (Jul 15, 2014)

I start work with URS in less than a week. Coincidently, I was offered a job with them a few days before the press release. Interesting merge.


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## Road Guy (Jul 15, 2014)

I've got a good friend interviewing with URS for a job in Texas today . He is wigged out about the merger... I figure it will take at least a year or two to fully implement...


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## envirotex (Jul 15, 2014)

Road Guy said:


> I've got a good friend interviewing with URS for a job in Texas today . He is wigged out about the merger... I figure it will take at least a year or two to fully implement...


in the ATX?


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## Road Guy (Jul 15, 2014)

I think it's Austin? He is a transportation person....


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## iwire (Jul 16, 2014)

I know people that work for both companies. I think lay off is definitely imminent considered there are plenty of overlapping.

Glad I work for a privately employee owned company


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## Supe (Jul 16, 2014)

iwire said:


> I know people that work for both companies. I think lay off is definitely imminent considered there are plenty of overlapping.
> 
> Glad I work for a privately employee owned company




I was recently involved in a merger with a ton of overlap, too. The only people who lost jobs were at the VP level or higher, so it can go either way.


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## iwire (Jul 16, 2014)

Supe said:


> iwire said:
> 
> 
> > I know people that work for both companies. I think lay off is definitely imminent considered there are plenty of overlapping.
> ...


those VP and higher lvls will have no problem leaving since they already make out like a bandit


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