Connecting Waterpeople

Jacobs announces intention to separate Critical Mission Solutions business

  • Jacobs announces intention to separate Critical Mission Solutions business
  • Next step in strategic portfolio transformation to unlock enhanced long-term shareholder value.

  • Creates a streamlined higher-growth, higher-margin business portfolio focused on critical infrastructure and sustainability.

About the entity

Jacobs is one of the world’s largest and most diverse providers of technical, professional, and construction services.


Jacobs announced that its Board of Directors has unanimously approved a plan to separate its Critical Mission Solutions (CMS) business from Jacobs, creating two independent companies, each positioned for greater success.

"This announcement is a significant milestone in our long record of taking bold actions to drive value creation," said Jacobs' CEO Bob Pragada. "By separating CMS, we will streamline our business portfolio and transform Jacobs into a higher-growth, higher-margin company more closely aligned with key global mega trends and growth sectors. For the CMS business, the benefits from the separation are equally compelling. CMS has grown to be an industry leading government services provider with significant scale, differentiated services and deep client relationships. As an independent company, CMS will be better able to focus on its distinct strategy and operating needs, driving further momentum in its business. We believe the separation will create value for all stakeholders."

Benefits of the Separation Transaction

As separate companies, Jacobs and the CMS business are expected to benefit from:

  • Enhanced focus with the ability to pursue individualized strategies and operational initiatives specific to the industries in which they each operate
  • Tailored capital allocation and structure, including equity, directed toward their respective growth opportunities and in line with industry-specific dynamics
  • Strengthened ability to attract and retain top talent through incentive programs more closely aligned with individual business performance
  • Investment profiles aligned with investor expectations and preferences for different market and business dynamics
  • Proven leadership teams and dedicated employees delivering world-class services to clients

Two leading companies

Jacobs: Following the separation, Jacobs will continue to be a premier technology-enabled solutions provider focused on addressing the world's most complex critical infrastructure and advanced manufacturing challenges. The streamlined portfolio will combine leading global capabilities in consulting, planning, engineering, design and program management with data science and technology-enabled expertise to deliver differentiated end-to-end solutions for primarily state, local and national governments and private sector clients throughout the world. The Company's leading positions in the attractive water and environment, energy transition, transportation and advanced manufacturing sectors are each closely aligned with the Company's three growth accelerators – Climate Response, Consulting and Advisory, and Data Solutions. Excluding the businesses to be separated, Jacobs generated approximately $10.5 billion in revenue in fiscal year 2022.

Critical Mission Solutions (CMS): CMS, which generated approximately $4.4 billion in revenue in fiscal year 2022, is a leading provider of technical consulting, applied science research, training, intelligent asset management and program management services to federal government agencies. CMS delivers mission-critical technology-enabled solutions aligned to space, national security, nuclear remediation and 5G technology. CMS's business benefits from a strong base of recurring, long-term enterprise contracts, where CMS's distinctive capabilities and deep client relationships provide a competitive advantage.

Steve Arnette, EVP and President of CMS, will continue to lead CMS.

Separation details

Jacobs is committed to maintaining an investment grade profile for Jacobs following the separation. The proposed capital structure, governance and other matters relating to CMS are still being determined and will be communicated at a later date.

Jacobs is targeting completing the separation in the second half of fiscal year 2024 through a distribution that is intended to be tax-free to Jacobs shareholders for U.S. federal income tax purposes. Completion of the separation transaction is subject to final approval by Jacobs' Board of Directors and other customary conditions, including the receipt of a private letter ruling from the Internal Revenue Service, opinions from tax advisors and the filing and effectiveness of a registration statement with the U.S. Securities and Exchange Commission. Jacobs intends to provide updates on the separation as appropriate.

Subscribe to our newsletter

Topics of interest

The data provided will be treated by iAgua Conocimiento, SL for the purpose of sending emails with updated information and occasionally on products and / or services of interest. For this we need you to check the following box to grant your consent. Remember that at any time you can exercise your rights of access, rectification and elimination of this data. You can consult all the additional and detailed information about Data Protection.

Featured news