(RTTNews) - Jacobs (J) and PA Consulting have reached an agreement for Jacobs to acquire the remaining stake in PA Consulting. The deal is structured with the company acquiring the remaining stake, which is primarily held by PA existing and former employees, for upfront consideration of approximately 1.216 billion pounds. The upfront consideration, net of certain transaction expenses payable by the shareholders, will be paid 80% in cash and 20% in Jacobs' shares. The transaction also includes deferred consideration of 75 million pounds which is payable in Jacobs' shares as valued on the two-year anniversary following closing, cash, or a combination thereof, at Jacobs' election.
Jacobs expects the transaction to increase adjusted EBITDA margin post-close. The transaction is expected to be accretive to adjusted EPS in the first 12 months after closing.
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