Amentum, a US-based provider of mission critical engineering and technical services, has completed its merger with the Critical Mission Solutions (CMS) and Cyber and Intelligence units of Jacobs Solutions Inc.. The deal aims to create a global leader in advanced engineering and innovative technology solutions. No financial terms were disclosed but key details include that Jacobs' shareholders will own 51% of Amentum's common shares, with 7.5% owned by Jacobs and contingent consideration placed in escrow based on fiscal year 2024 operating profit targets.
| Acquirer | Amentum |
|---|---|
| Target | Jacobs Solutions Inc.'s CMS and Cyber & Intelligence units |
| Value | Undisclosed |
| Type | Merge |
| Closing date | 2024-09-27 |
| Buy-side advisors | J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC |
| Sell-side advisors | Centerview Partners LLC, Perella Weinberg Partners LP |
| Legal buy-side | Cravath, Swaine & Moore LLP, Arnold & Porter Kaye Scholer LLP |
| Legal sell-side | Wachtell, Lipton, Rosen & Katz |
The merger seeks to combine Amentum’s expertise in mission critical engineering services with Jacobs' CMS and Cyber & Intelligence units’ strength in cyber security, intelligence solutions, and mission systems integration. This strategic move will enhance the combined entity's ability to serve clients across government, defense, energy, and other high-tech sectors.
The deal also includes a financial structure where 7.5% of Amentum shares are held by Jacobs, along with contingent consideration placed in escrow based on fiscal year 2024 performance targets set for the newly integrated units. This arrangement aligns incentives between the companies and provides a mechanism to ensure operational synergies.
Financial Context
The transaction is part of Amentum’s broader strategy to consolidate its position as a leading provider in mission critical engineering services, particularly within high-growth areas like cyber security and intelligence. With this integration, the combined entity will be well positioned to capture future growth opportunities in government contracts and international markets.
Advisors on both sides played significant roles in shaping the deal structure, ensuring that each party’s interests were aligned for mutual benefit. The financial institutions involved include J.P. Morgan Securities LLC and Morgan Stanley & Co. LLC as buy-side advisors to Amentum, while Centerview Partners LLC and Perella Weinberg Partners LP acted as sell-side advisors to Jacobs.
Outlook
Amentum and the former units of Jacobs Solutions Inc. are expected to continue pursuing growth through organic expansion and further acquisitions that align with their strategic focus areas. The merger sets a new benchmark for industry consolidation in the engineering services sector, highlighting the importance of integrating cyber capabilities alongside traditional mission critical engineering.