Amentum, a leader in systems integration and technology solutions, has reached a definitive agreement to merge with Jacobs’ Critical Mission Solutions (CMS) and Cyber and Intelligence (C&I) businesses. This union marks the creation of a new publicly traded company, establishing a new leader trusted by the United States and its allies with a revenue of $13 billion and a workforce of over 53,000 employees in 83 countries.

Management and Governance Post-Merger

John Heller, the current CEO of Amentum, will serve as CEO of the combined company, with Dr. Steve Arnette, EVP and President of CMS, as COO. Steve Demetriou, the current Executive Chair of Jacobs, will become the Executive Chair of the new entity. The board of directors will comprise an equal number of directors from Jacobs and Amentum.

Strategic Goals of the Merger

The merger aims to create a leading government technology solutions provider, with around $13 billion in combined revenue. This includes a majority stake in prime contracts for government clients and a skilled talent pool. The combined company is expected to yield higher growth and margin in intelligence, cyber, energy, digital engineering, and science and technology sectors.

Financial and Operational Synergies

Management has identified $50-70 million in estimated net cost synergies, with the combined company projected to have $50 billion in backlog, approximately $13 billion in revenue, and more than $1.1 billion in projected 2024 adjusted EBITDA. The leverage ratio at closing is targeted at 3.8x, with plans to reduce it within 24 months.

Advisory Roles in the Transaction

J.P. Morgan Securities LLC and Morgan Stanley & Co. LLC are advising Amentum, while Centerview Partners LLC and Perella Weinberg Partners LP are advising Jacobs. Goldman Sachs provided financial advice to the Jacobs Board of Directors.

  Amentum, Dr. Steve Arnette, Jacobs, John Heller