Jacobs Seals £1.2B Deal to Fully Acquire PA Consulting, Creating a Global Innovation Powerhouse

Jacobs will buy the remaining stake in PA Consulting at a £3.05B valuation, strengthening its global reach in strategy, innovation, and transformation consulting.

Leading innovation and transformation consultant PA Consulting and Jacobs have come to an agreement for Jacobs to buy the remaining portion of PA Consulting, which is mainly owned by PA's current and former employees. Jacobs' further investment in PA establishes a worldwide consulting powerhouse for clients, offering solutions that improve innovation, increase capital efficiency, and produce long-term value.

A valuation of around 3.05 billion pounds for 100 percent of the business, or 13.0 times expected calendar year 2025 adjusted EBITDA2 before synergies and 12.3 times including estimated synergies, will be reflected in the total upfront consideration for the remaining stake, which will be around 1.216 billion pounds ($1.6 billion). In addition, 75 million pounds in deferred consideration is included in the agreement, which is expected to be paid in Jacobs' shares valued on the second anniversary of the transaction closing. The Board of Directors of Jacobs and the Stakeholder Representatives of PA have totally approved the agreement. Members of the senior leadership team and representatives from PA's stakeholders have made unchangeable promises to vote in support of the agreement.

According to Bob Pragada, Chair and CEO of Jacobs, since their strategic investment in March 2021, Jacobs's partnership with PA Consulting has speeded up profitable development and reinforced Jacobs' leadership as they redefine the asset lifecycle, establishing them earlier in client journeys and expanding their impact across strategy, transformation, and advisory. Also, Jacobs' in-depth knowledge of capital asset cycles, infrastructure delivery, and highly technical program management improves PA Consulting's strategic advisory, innovation, and transformation skills, allowing them to turn audacious concepts into workable, optimal results for their clients.

This is a major moment for their business and underscores the disciplined approach for return-focused capital allocation and their priority to drive sustained value creation, Pragada said. They are in a position to greatly enhance Jacobs' margin profile and unleash synergies, including new cross-sell opportunities, as seen by their relationship over the previous four years.