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.