In a groundbreaking move, Jacobs has unveiled its strategic decision to merge its Critical Mission Solutions and Cyber & Intelligence government services businesses with Amentum, a global engineering and technology solutions provider. The result is a newly formed, publicly-traded government technology solutions company, poised to tackle some of the world's most intricate challenges. This merger not only represents a significant shift in Jacobs' business portfolio but also signifies a strategic move towards a more streamlined and focused organisation aligned with critical infrastructure and sustainability.
The merger creates a robust, leading government technology solutions business with ~$13 billion1 annual revenue. The combined company, comprising Jacobs' Critical Mission Solutions, Cyber & Intelligence from its Divergent Solutions business, and Amentum, is expected to have more than 80% of its revenue from prime contracts serving government clients. Jacobs will retain its innovative, next-generation data solutions and digital technologies business.
"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," said Jacobs CEO Bob Pragada. "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 realisation of synergies. I am confident the CMS and Cyber & Intelligence Solutions teams are poised for continued success in their new chapter as part of a more focused, independent public company that will be a leading player in the critical mission government services space – with both breadth and depth of capabilities across a more diversified portfolio."
"Uniting our great organisations – Amentum, CMS, and Cyber & Intelligence Solutions – creates a leading provider of systems integration and technology solutions with the talent, scope, scale and footprint to deliver excellence and a wider range of solutions for our clients," commented Amentum CEO John Heller.
"Our combined company will deliver extensive expertise in the government's highest priority areas of energy, space exploration, intelligence and analytics, and digital modernisation. We look forward to the union of our strong teams and a bright future ahead."
Post-separation, Jacobs will continue to be a premier technology-enabled solutions provider focused on critical infrastructure and sustainability challenges. The move is aligned with Jacobs' goal to be a leader in water and environment, energy transition, transportation, and advanced manufacturing.
Reference: www.jacobs.com “Jacobs to Spin-off and Merge its Critical Mission Solutions and Cyber & Intelligence Government Services Businesses with Amentum, Creating an Independent, Publicly Traded Company.” SOURCE Jacobs
