Dallas-based engineering consulting giant Jacobs has completed its acquisition of London-based PA Consulting in a deal valued at $1.6 billion, as it aims to advance its long-term growth strategy. 

Since Jacobs took a 65% stake in PA Consulting for $2.5 billion in 2021, the London-based company has helped expand Jacobs’ footprint and services in advisory, digital, data and technology-enabled solutions, reinforcing the company’s work in infrastructure, advanced manufacturing, energy and life sciences. The combined business will serve clients in numerous sectors, including government and private organizations, supporting work from strategy and design through execution across major capital programs, digital innovation and operational change, Jacobs said.

Jacobs Chair and Chief Executive Officer Bob Pragada said that full ownership of the firm would “strengthen our position as a comprehensive partner delivering integrated advisory and technology-enabled solutions at global scale.”

“Clients increasingly seek fewer interfaces and greater accountability as they navigate large, complex initiatives,” Pragada added in a statement. “By bringing our strategy, digital innovation and major program delivery capabilities closer together, we can help clients move from insight to implementation with greater speed, capital efficiency and confidence. At the same time, expanding our high-value advisory and digital services enhances our growth trajectory and supports margin expansion—advancing long-term value creation for our shareholders.”

More on the deal and partnership

The deal received widespread support from PA employees and shareholders, the company said, with more than 97% of voting shareholders, representing over 99% of share value, casting favorable votes.

“In fully uniting with Jacobs, we’re extending PA’s distinctive innovation and transformation capabilities and further strengthening our ability to help clients navigate complexity and unlock new possibilities,” PA Consulting CEO Christian Norris said. “With this next chapter now underway, we’ll build on our collective achievements and deliver even more meaningful impact as a single global team.”

On Friday, Jacobs completed the acquisition of all PA shares not previously owned for upfront consideration of approximately £1.2 billion (around $1.6 billion). Jacobs completed the deal according to the terms announced on January 5, satisfying all required closing conditions. The upfront consideration, net of certain transaction expenses payable by the PA shareholders and after making payments with respect to certain PA shares which Jacobs acquired for 100% cash, was paid 80% in cash and 20% in Jacobs’ shares. The transaction was funded through a combination of cash-on-hand and existing and incremental debt facilities.

The deal includes deferred consideration of £75 million (approximately $99.8 million), which is payable in Jacobs’ shares as valued on the two-year anniversary following closing, cash, or a combination thereof, at Jacobs’ election.

Partnering on DFW Airport’s digital transformation

Currently, the two companies are partnering on a digital transformation of Dallas-Fort Worth International Airport, which Dallas Innovates told you about last October. The project aims to help the world’s third busiest airport meet rising global travel demands through smarter infrastructure—and set a new standard for “intelligent, intelligent, data-driven operations in North American aviation.”

Don’t miss what’s next. Subscribe to Dallas Innovates.

Track Dallas-Fort Worth’s business and innovation landscape with our curated news in your inbox Tuesday-Thursday.