Jacobs has announced an agreement to acquire the remaining stake in PA Consulting, currently held by PA’s existing and former employees, for a total of £1.216 billion ($1.6 billion). This acquisition will bring the total valuation of PA Consulting to £3.05 billion, or 13.0x the expected adjusted EBITDA for the calendar year 2025. The deal also includes £75 million in deferred consideration, payable in Jacobs’ shares two years after the transaction’s completion. The acquisition has been unanimously approved by both Jacobs’ Board of Directors and PA’s Stakeholder Representatives.
Jacobs Chair and CEO Bob Pragada highlighted the strategic benefits of the transaction, noting that it would strengthen Jacobs’ position in the asset lifecycle and expand their impact across strategy, transformation, and advisory. "Our collaboration with PA Consulting has accelerated profitable growth and reinforced Jacobs’ leadership as we redefine the asset lifecycle," Pragada said.
PA Consulting CEO Christian Norris also expressed enthusiasm about the deal, emphasizing how the merger will better position the companies to tackle a broader range of client challenges. “Together, we’re making a positive difference to businesses, economies, and societies," Norris stated. "Looking ahead, I’m excited to deliver even greater impact as one global company."
The acquisition aims to create a stronger end-to-end asset lifecycle offering, increase Jacobs' presence in high-growth sectors like advanced manufacturing and life sciences, and enhance joint business opportunities. Additionally, the transaction is expected to streamline governance and operations, leading to cost synergies of £12-15 million within 24 months. The deal is expected to drive higher margins and be accretive to adjusted EPS within the first 12 months post-close.
