After announcing earlier this year that it would spin off its Critical Mission Solutions business, Dallas-based Jacobs Solutions has unveiled a major move expected to yield a new publicly traded company in the government services sector.
The engineering firm, which moved its headquarters to North Texas from Pasadena, California, in 2016, plans to merge its Critical Mission Solutions (CMS) business — along with the Cyber & Intelligence government services components of its Divergent Solutions business — with competitor Amentum, according to a news release.
The move is set to create an international aerospace- and defense-focused giant.
The Dallas Morning News reported that Amentum was formed in 2020 in a similar spin-off from AECOM, a company that also moved its headquarters to Dallas from California.
Jacobs CEO Bob Pragada said the combined company would specifically seek out opportunities to grow in areas deemed the highest global threats by the company, such as the Middle East and the Indo-Pacific regions, according to the DMN.
“Our combined company will deliver extensive expertise in the government’s highest priority areas of energy, space exploration, intelligence and analytics, and digital modernization,” said Amentum CEO John Heller, who will lead the merged company, per the news release.
Jacobs and its shareholders are expected to own 63% of the new company upon closing of the deal, which is subject to a variety of closing conditions and regulatory approvals.
“By separating CMS and associated Cyber & Intelligence Solutions, Jacobs will streamline our business portfolio and transform into a more focused, higher-margin company more closely aligned with key global mega trends,” Pragada said in a prepared statement. “We believe this transaction is in the best interests of the company and our stakeholders, gaining the benefits of a tax-efficient transaction, plus even greater value with significant cash proceeds and future realization of synergies.”
