LOS ANGELES (AP) — Engineering design company Aecom Technology Corp. said Sunday it is buying URS Corp. for $4 billion in cash and stock, or about $56.31 per URS share.
The price is 8 percent above URS's closing stock price of $52.02 on Friday, but 19 percent above the average price for the last 30 days. Shares spiked and retreated on Friday on a report that URS was looking to sell.
The California-based companies said the combination was necessary to building an integrated infrastructure services company that can operate globally and provide services including design, financing, construction and operation of buildings. The combined firm will be headquartered in Los Angeles.
The companies had worked together on projects such as the Barclays Center in Brooklyn and the World Trade Center in New York.
Aecom CEO Michael Burke said the deal will give Aecom a broader portfolio of services and access to URS' strong client relationships in the oil and gas, power and government services sectors.
The offer includes $33 per share in cash and 0.734 Aecom shares for every URS share.
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