Jacobs has agreed to acquire the remaining stake in PA Consulting for approximately £1.216 billion, strengthening its position as a global advisory leader.

Target Information

Jacobs (NYSE: J), a global professional services firm, has announced an agreement to acquire the remaining stake in PA Consulting, an innovative transformation consultancy predominantly held by existing and former employees of PA. This strategic move bolsters Jacobs' position as a formidable global advisory entity, enabling the company to provide enhanced solutions that focus on capital efficiency, innovation acceleration, and long-term value creation for its clients.

The total upfront consideration for the acquisition is approximately £1.216 billion ($1.6 billion), which values 100% of PA Consulting at around £3.05 billion. This represents an earnings multiple of 13.0 times the expected adjusted EBITDA for the calendar year 2025 before synergies, and 12.3 times including anticipated synergies. Furthermore, the transaction entails an additional £75 million in deferred consideration expected to be fulfilled with Jacobs' shares on the second anniversary of the closing.

Industry Overview

The consulting industry in the United Kingdom, which includes PA Consulting, is characterized by a robust demand for advisory services driven by increasing complexities in business environments. Organizations are continually seeking expert guida