Jacobs Solutions (NYSE:J) reached an agreement on Monday to acquire the remaining stake in PA Consulting for an upfront consideration of approximately £1.216 billion ($1.6 billion).
The transaction marks the final step in a multi-year partnership that began in 2021, moving the technical services firm deeper into the lucrative world of high-value strategic advisory and artificial intelligence.
The deal implies a total enterprise valuation for PA Consulting of approximately £3.05 billion.
This represents a multiple of roughly 13.0x the expected calendar year 2025 adjusted EBITDA before synergies, or 12.3x when accounting for projected cost efficiencies.
The buyout is structured to maintain a mix of liquidity and long-term incentive.
Approximately 80% will be paid in cash, with the remaining 20% issued in Jacobs common stock.
An additional £75 million in Jacobs shares will be payable on the second anniversary of the closing date.
Jacobs management expects to realize £12–15 million in annual cost synergies within the first 24 months of full ownership.
The move is a cornerstone of CEO Bob Pragada’s strategy to transition Jacobs from a traditional engineering and construction firm into a "digitally-led" global consultancy.
By fully integrating PA Consulting, Jacobs gains unchecked access to PA's 4,000-strong workforce specializing in transformation, design, and AI-driven innovation.
The transaction has been unanimously approved by Jacobs' Board of Directors and the representatives of PA’s stakeholders, who primarily consist of current and former employees.
To finalize the deal, the parties must now secure approval from PA shareholders and clear a U.K. Court process, a standard requirement for this type of U.K.-based corporate structure.
Jacobs expects to complete the acquisition by the end of its fiscal 2026 second quarter (approximately March 2026).