Jacobs to spin off government services business with Amentum
November 27, 2023
Consulting engineering firms Jacobs and Amentum have entered a definitive agreement to combine Jacobs’ critical mission solutions (CMS) and cyber and intelligence government services operations with Amentum to build a new business in the government services sector.
The combined enterprise represents some $13 billion in annual revenue. Jacobs and its shareholders will own up between 58.5% and 63% of the business.
“I am confident the CMS and cyber and intelligence solutions teams are poised for continued success as part of a more focused, independent public company, with both breadth and depth of capabilities across a more diversified portfolio,” says Jacobs CEO Bob Pragada.
Jacobs first announced the intent to separate its CMS business in May. The new agreement follows a comprehensive review of various options, including inquiries that resulted from that announcement, and allows Jacobs to retain its data solutions and digital technologies business.
“Our combined company will deliver extensive expertise in areas of energy, space exploration, intelligence, analytics and digital modernization,” says Amentum CEO John Heller. “We look forward to the union of our strong teams and a bright future ahead.”
The board of directors of the combined company will initially include an equal number of directors appointed by Jacobs and Amentum. Members of the senior management team will also be drawn from both companies, to be announced as integration planning progresses.