US engineering giant Jacobs has snapped up fellow American firm CH2M in a takeover deal worth $3.27bn (£2.47bn).
More from: Jacobs buys CH2M in £2.47bn takeover deal
The deal was confirmed after weeks of speculation that the two firms were conducting detailed talks over a possible merger.
According to Jacobs, the takeover will see the formation of a $15bn (£11bn) global business.
The two companies announced that they had entered into a definitive agreement under which Jacobs will acquire all outstanding CH2M shares in a cash and stock transaction.
The takeover will see 60 per cent paid in cash and 40 per cent paid in Jacobs common stock.
It also includes $416m (£314m) of CH2M’s net debt. Jacobs said it expected to make $150m (£113m) of cost synergies through the merger.
Jacobs said the deal brought together two “industry-leading, innovative companies with complementary capabilities, cultures and relationships”.
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Jacobs chairman and CEO Steve Demetriou said: “By increasing our industry reach and adding to our already extensive skills, this transaction enhances our value to our clients and bolsters Jacobs’ position as a premier consulting, design, engineering, construction, and operations and maintenance technical services firm.
“CH2M brings to Jacobs a talented, engaged team with capabilities and values that are very complementary to our own.
“Together, we will bring more solutions to our clients, give more opportunity to our employees and create increased value for Jacobs’ shareholders.
“In addition, this transaction is consistent with our M&A criteria, accelerating our ability to achieve our financial growth targets and propelling Jacobs toward our vision of providing innovative solutions for a more connected, sustainable world.”