Jacobs to Buy 65% Stake in PA Consulting; Steve Demetriou Quoted

Jacobs has entered a strategic partnership with PA Consulting, Jacobs reported on Monday. Under the partnership, Jacobs will acquire a 65 percent stake in PA. The investment places an enterprise value of PA at $2.4 billion. The remaining 35 percent stake will be held by PA employees, following the exit of existing majority stakeholder, The Carlyle Group. 

"Our partnership with PA forms a unique offering in the market that combines strategic front-end consulting and deep domain knowledge across key sectors with next generation science and technology expertise,” said Jacobs Chair and CEO Steve Demetriou.

PA has more than doubled EBITDA, with a compound annual revenue growth of 12 percent since 2016. The company has worked with clients to create offerings that grow their businesses and support their customers. 

“This strategic partnership is an intentional move in accelerating our strategy to lead the market as a company like no other," Demetriou added. 

PA has developed innovative solutions with Ori Biotech to advance cell and gene therapy manufacturing and with public utilities leveraging iPredict, an AI and Machine Learning system to predict failures in critical underground electricity distribution assets.

''We see Jacobs as the ideal partner for PA, leveraging their client relationship networks and global platform to position us for the next phase of growth,” CEO of PA Consulting Ken Toombs said. 

The strategic partnership between Jacobs and PA will advance differentiated solutions that deliver end-to-end value for clients, employees and investors. The companies will also work to accelerate PA’s growth plan through access to Jacobs client base and global platform. 

"The partnership respects and preserves PA's heritage and independence under Ken Toombs' leadership – while creating superior value for Jacobs shareholders and significant opportunities for our clients and employees," Demetriou continued.