{"id":389369,"date":"2020-11-30T07:19:27","date_gmt":"2020-11-30T12:19:27","guid":{"rendered":"http:\/\/www.marketnewsdesk.com\/?p=389369"},"modified":"2020-11-30T07:19:27","modified_gmt":"2020-11-30T12:19:27","slug":"pa-consulting-and-jacobs-announce-agreement-on-future-investment-and-strategic-partnership","status":"publish","type":"post","link":"https:\/\/www.marketnewsdesk.com\/index.php\/pa-consulting-and-jacobs-announce-agreement-on-future-investment-and-strategic-partnership\/","title":{"rendered":"PA Consulting and Jacobs announce agreement on future investment and strategic partnership"},"content":{"rendered":"<div class=\"xn-newslines\">\n<p class=\"xn-distributor\">PR Newswire<\/p>\n<\/p><\/div>\n<div class=\"xn-content\">\n<p>\n        <span class=\"xn-location\">NEW YORK<\/span>, <span class=\"xn-chron\">Nov. 30, 2020<\/span> \/PRNewswire\/ &#8212;\u00a0<a target=\"_blank\" href=\"https:\/\/c212.net\/c\/link\/?t=0&amp;l=en&amp;o=2995656-1&amp;h=4255335366&amp;u=https%3A%2F%2Fwww.paconsulting.com%2F&amp;a=PA+Consulting\" rel=\"nofollow noopener noreferrer\">PA Consulting<\/a>\u00a0(PA), the consultancy that&#8217;s\u00a0Bringing\u00a0Ingenuity to\u00a0Life, today announced that\u00a0global technical and professional services leader,\u00a0<a target=\"_blank\" href=\"https:\/\/c212.net\/c\/link\/?t=0&amp;l=en&amp;o=2995656-1&amp;h=204891856&amp;u=http%3A%2F%2Fwww.jacobs.com%2F&amp;a=Jacobs\" rel=\"nofollow noopener noreferrer\">Jacobs<\/a>\u00a0(NYSE: J)\u00a0has signed an agreement to invest in PA for a\u00a065%\u00a0shareholding in the company. The transaction, which\u00a0values PA\u00a0at \u00a31.825\u00a0billion and is expected to close\u00a0by the end of calendar\u00a0Q1 2021 subject to regulatory approvals\u00a0and shareholder consent,\u00a0sees current shareholder The Carlyle Group exit its\u00a0stake in PA.\u202f\u00a0\u00a0<\/p>\n<p>PA has grown strongly during the five-year Carlyle investment period through a combination of organic and M&amp;A-led growth (seven acquisitions) which has driven global expansion. This has resulted in EBITDA more than doubling over the period of Carlyle&#8217;s investment and compound annual revenue growth of 12% since 2016. <\/p>\n<p>From its inception in 1943, PA has worked with a wide range of clients \u2013 from start-ups with a promising idea to change the world to some of the most important global companies and organizations \u2013 to find innovative ways to be faster and nimbler,\u202fand\u00a0to create the services and products that grow their businesses, delight their customers and serve citizens.\u00a0PA\u00a0has developed\u00a0world-leading innovations, for example with\u00a0<a target=\"_blank\" href=\"https:\/\/c212.net\/c\/link\/?t=0&amp;l=en&amp;o=2995656-1&amp;h=1698190816&amp;u=https%3A%2F%2Fwww.paconsulting.com%2Four-experience%2Fvirgin-hyperloop-one-creating-the-first-major-new-mode-of-transport-in-more-than-a-century%2F&amp;a=Virgin+Hyperloop\" rel=\"nofollow noopener noreferrer\">Virgin Hyperloop<\/a>\u00a0to reinvent transport,\u00a0with\u00a0<a target=\"_blank\" href=\"https:\/\/c212.net\/c\/link\/?t=0&amp;l=en&amp;o=2995656-1&amp;h=1204677108&amp;u=https%3A%2F%2Fwww.paconsulting.com%2Four-experience%2Fori-biotech-revolutionising-cell-and-gene-therapy-manufacturing%2F&amp;a=Ori+Biotech\" rel=\"nofollow noopener noreferrer\">Ori Biotech<\/a>\u00a0to\u00a0revolutionize\u00a0cell and gene therapy manufacturing,\u00a0and\u00a0with\u00a0<a target=\"_blank\" href=\"https:\/\/c212.net\/c\/link\/?t=0&amp;l=en&amp;o=2995656-1&amp;h=2850586166&amp;u=https%3A%2F%2Fwww.paconsulting.com%2Four-experience%2Fsan-diego-gas--electric-predicting-the-failure-of-utility-assets%2F&amp;a=iPredict%E2%84%A2%2C\" rel=\"nofollow noopener noreferrer\">iPredict\u2122,<\/a>\u00a0the world&#8217;s first\u00a0AI and machine learning\u00a0system\u00a0to\u00a0predict failures in critical underground electricity distribution assets.\u00a0<\/p>\n<p>The new\u00a0strategic\u00a0partnership with\u00a0Jacobs\u00a0will enable PA to build on this success and to accelerate its growth plan through geographic expansion, particularly in the US, and\u00a0additional\u00a0acquisitions.\u00a0The partnership will see PA\u00a0further enhance\u00a0its market-leading capabilities\u00a0in\u00a0innovation,\u00a0design, digital and\u00a0technology.\u00a0The\u00a0private equity style\u00a0investment from\u00a0Jacobs\u00a0will allow PA to retain its independence,\u00a0alongside current culture, brand and values. The continued share ownership by PA employees is a key feature of the transaction.\u00a0<\/p>\n<p>\n        <b><br \/>\n          <span class=\"xn-person\">John Alexander<\/span>, Chair of PA, said<\/b>: &#8220;We have undertaken a thorough process to screen and select potential new external investors that align with PA&#8217;s culture, independence and ambition.\u00a0Jacobs\u00a0stood out during the selection process because of the close affinity between our respective values and their reputation as one of the leading global providers of technical and professional services to clients across the public and private sectors.\u00a0We were hugely impressed with\u00a0Jacobs&#8217; commitment\u00a0to\u00a0a PE\u00a0style\u00a0investment\u00a0to support our values and purpose and\u00a0accelerate\u00a0our growth trajectory.&#8221;<\/p>\n<p>\n        <b><br \/>\n          <span class=\"xn-person\">Ken Toombs<\/span>, CEO of PA Consulting, said:<\/b>\u00a0&#8220;We would like to thank Carlyle for the excellent partnership over five years. Together we have significantly grown the business and we are proud of what we have accomplished. We see\u00a0Jacobs\u00a0as the ideal partner for PA because of\u00a0their\u00a0market leading reputation, the alignment\u00a0with\u00a0our respective ambition and the opportunities to better serve clients through\u00a0access to\u00a0Jacobs&#8217;\u00a0global\u00a0platform and\u00a0client base, positioning us for the next phase of growth.\u00a0Their purpose of creating a more connected, sustainable world\u00a0and commitment to an inclusive future for all aligns with our own\u00a0purpose \u2013\u00a0Bringing\u00a0Ingenuity to\u00a0Life \u2013 and our\u00a0commitment\u00a0to innovate towards a positive human future.\u00a0We look forward to continuing to deliver ingenious solutions for our clients, supported by\u00a0Jacobs&#8217;\u00a0investment and complementary capability.&#8221;<\/p>\n<p>\n        <b>Jacobs Chair and CEO <span class=\"xn-person\">Steve Demetriou<\/span> said:<\/b>\u00a0&#8220;We are excited by this partnership and the opportunity to set a new industry benchmark together for technically-driven solutions that drive value for our\u00a0clients, employees and investors \u2013 and changing the shape of our industry.\u00a0We look forward to working together to deliver PA&#8217;s ambitious growth plans and strengthening their reputation as the leading provider of end-to-end innovation capability.&#8221;<\/p>\n<p>\n        <b><br \/>\n          <span class=\"xn-person\">Fraser Robson<\/span>, a Managing Director in the Carlyle Europe Partners advisory team, said:<\/b>\u00a0&#8220;It has been a great pleasure working with the PA team. Together we have invested in people, technical capabilities, and expanded the PA platform through strategic acquisitions. This has delivered strong growth and we are delighted with the role we have played in establishing PA as a global industry leader in its field.&#8221;<\/p>\n<p>Carlyle invested in PA Consulting in <span class=\"xn-chron\">December 2015<\/span> through Carlyle Europe Partners IV (CEP IV), a European-focused, upper-mid market buyout fund. The exit of CEP IV&#8217;s stake in PA is another example of Carlyle&#8217;s strategy of working in partnership with management teams to execute value creation initiatives.\u00a0\u00a0<\/p>\n<p>\n        <b>Transaction Terms and Financing<\/b>\u00a0<br \/>The transaction is structured as a private equity style investment, with Jacobs acquiring a 65% stake in the form of preferred and common equity, with PA employee rollover constituting the remaining approximately 35% ownership stake at closing. Preferred equity holders receive a 12% compounded annual coupon accrual. A sweet equity incentive pool of 25% of the common equity is available for issuance to current and future partners and employees of PA Consulting. The sweet equity pool will be funded after satisfying the coupon on the preferred equity. In addition, Jacobs will provide debt financing to PA in the form of a \u00a3650 million (<span class=\"xn-money\">$845 million<\/span>) term loan and a revolving credit facility of up to \u00a3100 million (<span class=\"xn-money\">$130 million<\/span>) to fund future growth. Jacobs intends to fund the acquisition through a combination of cash-on-hand and existing and incremental debt facilities.\u00a0<\/p>\n<p>The transaction will be implemented by way of a U.K. Scheme of Arrangement and is subject to the satisfaction of customary closing conditions, including the approval of the current shareholders of PA and the U.K. Court (pursuant to the Scheme), as well as the U.K. Financial Conduct Authority.\u00a0Jacobs expects the transaction to close by the end of its fiscal 2021 second quarter.\u00a0<\/p>\n<p>\n        <b>Advisors\u00a0<\/b>\u00a0<br \/>J.P. Morgan and HSBC are serving as financial advisors to The Carlyle Group and PA Consulting. Linklaters is serving as legal counsel to The Carlyle Group and PA Consulting, and <span class=\"xn-person\">Dickson Minto<\/span> is serving as legal counsel to PA\u00a0regarding\u00a0its\u00a0new partnership with Jacobs.\u00a0\u00a0<\/p>\n<p>\n        <b>About PA<\/b>\u00a0<br \/>We believe in the power of ingenuity to build a positive human future in a technology-driven world.\u00a0As strategies, technologies and innovation collide, we create opportunity from complexity.\u00a0Our diverse teams of experts combine innovative thinking and breakthrough use of technologies to progress further, faster. Our clients adapt and transform, and together we achieve enduring results.\u00a0An innovation and transformation consultancy, we are over 3,200 specialists in consumer\u00a0and manufacturing,\u00a0defense\u00a0and security, energy and utilities, financial services, government, health and life sciences, and transport. Our people are strategists, innovators, designers, consultants, digital experts, scientists, engineers and technologists. We operate globally from offices across the UK, US, <span class=\"xn-location\">Europe<\/span>, and the Nordics.\u00a0<b>PA. Bringing Ingenuity to Life.<\/b>\u00a0 <a target=\"_blank\" href=\"https:\/\/c212.net\/c\/link\/?t=0&amp;l=en&amp;o=2995656-1&amp;h=3002465946&amp;u=http%3A%2F%2Fwww.paconsulting.com%2F&amp;a=www.paconsulting.com\" rel=\"nofollow noopener noreferrer\"><b>www.paconsulting.com<\/b><\/a>\u00a0\u00a0<\/p>\n<p>\n        <b>About\u00a0The\u00a0Carlyle\u00a0Group<\/b>\u00a0<br \/>The Carlyle Group (NASDAQ: CG) is a global investment firm with deep industry expertise that deploys private capital across four business segments: Corporate Private Equity, Real Assets, Global Credit and Investment Solutions. With <span class=\"xn-money\">$230 billion<\/span> of assets under management as of <span class=\"xn-chron\">September 30, 2020<\/span>, Carlyle&#8217;s purpose is to invest wisely and create value on behalf of its investors, portfolio companies and the communities in which we live and invest. Carlyle employs more than 1,800 people in 30 offices across six continents. Further information is available at <a href=\"http:\/\/www.carlyle.com\" rel=\"nofollow\">www.carlyle.com<\/a>. Follow Carlyle on Twitter @OneCarlyle.\u00a0<\/p>\n<p>\n        <b>About\u00a0Jacobs<\/b>\u00a0<br \/>At Jacobs (NYSE: J), we&#8217;re challenging today to reinvent tomorrow by solving the world&#8217;s most critical problems for thriving cities, resilient environments, mission-critical outcomes, operational advancement, scientific discovery and cutting-edge manufacturing, turning abstract ideas into realities that transform the world for good. With approximately <span class=\"xn-money\">$14 billion<\/span> in revenue and a talent force of more than 55,000, Jacobs provides a full spectrum of professional services including consulting, technical, scientific and project delivery for the government and private sector.\u00a0Visit\u00a0<a target=\"_blank\" href=\"https:\/\/c212.net\/c\/link\/?t=0&amp;l=en&amp;o=2995656-1&amp;h=3611536116&amp;u=https%3A%2F%2Fwww.jacobs.com%2F&amp;a=Jacobs.com\" rel=\"nofollow noopener noreferrer\">Jacobs.com<\/a>\u00a0and\u00a0connect with Jacobs on\u00a0<a target=\"_blank\" href=\"https:\/\/c212.net\/c\/link\/?t=0&amp;l=en&amp;o=2995656-1&amp;h=463065064&amp;u=https%3A%2F%2Fwww.facebook.com%2FJacobsConnects&amp;a=Facebook\" rel=\"nofollow noopener noreferrer\">Facebook<\/a>,\u00a0<a target=\"_blank\" href=\"https:\/\/c212.net\/c\/link\/?t=0&amp;l=en&amp;o=2995656-1&amp;h=2770058897&amp;u=https%3A%2F%2Fwww.instagram.com%2Fjacobsconnects%2F&amp;a=Instagram\" rel=\"nofollow noopener noreferrer\">Instagram<\/a>,\u00a0<a target=\"_blank\" href=\"https:\/\/c212.net\/c\/link\/?t=0&amp;l=en&amp;o=2995656-1&amp;h=4023487102&amp;u=https%3A%2F%2Fwww.linkedin.com%2Fcompany%2Fjacobs%2F&amp;a=LinkedIn\" rel=\"nofollow noopener noreferrer\">LinkedIn<\/a>\u00a0and\u00a0<a target=\"_blank\" href=\"https:\/\/c212.net\/c\/link\/?t=0&amp;l=en&amp;o=2995656-1&amp;h=2702886560&amp;u=https%3A%2F%2Ftwitter.com%2FJacobsConnects&amp;a=Twitter\" rel=\"nofollow noopener noreferrer\">Twitter<\/a>.\u00a0<\/p>\n<p>\u00a0<\/p>\n<p id=\"PURL\">\n        <img loading=\"lazy\" decoding=\"async\" title=\"Cision\" width=\"12\" height=\"12\" alt=\"Cision\" src=\"https:\/\/c212.net\/c\/img\/favicon.png?sn=NY06108&amp;sd=2020-11-30\" \/> View original content:<a id=\"PRNURL\" rel=\"nofollow\" href=\"http:\/\/www.prnewswire.com\/news-releases\/pa-consulting-and-jacobs-announce-agreement-on-future-investment-and-strategic-partnership-301181527.html\">http:\/\/www.prnewswire.com\/news-releases\/pa-consulting-and-jacobs-announce-agreement-on-future-investment-and-strategic-partnership-301181527.html<\/a><\/p>\n<p>SOURCE  PA Consulting<\/p>\n<\/p><\/div>\n<p>    <img decoding=\"async\" alt=\"\" src=\"https:\/\/rt.prnewswire.com\/rt.gif?NewsItemId=NY06108&amp;Transmission_Id=202011300716PR_NEWS_USPR_____NY06108&amp;DateId=20201130\" style=\"border:0px;width:1px;height:1px\" \/><\/p>\n","protected":false},"excerpt":{"rendered":"<p>PR Newswire NEW YORK, Nov. 30, 2020 \/PRNewswire\/ &#8212;\u00a0PA Consulting\u00a0(PA), the consultancy that&#8217;s\u00a0Bringing\u00a0Ingenuity to\u00a0Life, today announced that\u00a0global technical and professional services leader,\u00a0Jacobs\u00a0(NYSE: J)\u00a0has signed an agreement to invest in PA for a\u00a065%\u00a0shareholding in the company. The transaction, which\u00a0values PA\u00a0at \u00a31.825\u00a0billion and is expected to close\u00a0by the end of calendar\u00a0Q1 2021 subject to regulatory approvals\u00a0and shareholder consent,\u00a0sees current shareholder The Carlyle Group exit its\u00a0stake in PA.\u202f\u00a0\u00a0 PA has grown strongly during the five-year Carlyle investment period through a combination of organic and M&amp;A-led growth (seven acquisitions) which has driven global expansion. This has resulted in EBITDA more than doubling over the period of Carlyle&#8217;s investment and compound annual revenue growth of 12% since 2016. From its inception in 1943, PA has &hellip; <\/p>\n<p class=\"link-more\"><a href=\"https:\/\/www.marketnewsdesk.com\/index.php\/pa-consulting-and-jacobs-announce-agreement-on-future-investment-and-strategic-partnership\/\" class=\"more-link\">Continue reading<span class=\"screen-reader-text\"> &#8220;PA Consulting and Jacobs announce agreement on future investment and strategic partnership&#8221;<\/span><\/a><\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-389369","post","type-post","status-publish","format-standard","hentry"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.8 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>PA Consulting and Jacobs announce agreement on future investment and strategic partnership - Market Newsdesk<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.marketnewsdesk.com\/index.php\/pa-consulting-and-jacobs-announce-agreement-on-future-investment-and-strategic-partnership\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"PA Consulting and Jacobs announce agreement on future investment and strategic partnership - Market Newsdesk\" \/>\n<meta property=\"og:description\" content=\"PR Newswire NEW YORK, Nov. 30, 2020 \/PRNewswire\/ &#8212;\u00a0PA Consulting\u00a0(PA), the consultancy that&#8217;s\u00a0Bringing\u00a0Ingenuity to\u00a0Life, today announced that\u00a0global technical and professional services leader,\u00a0Jacobs\u00a0(NYSE: J)\u00a0has signed an agreement to invest in PA for a\u00a065%\u00a0shareholding in the company. The transaction, which\u00a0values PA\u00a0at \u00a31.825\u00a0billion and is expected to close\u00a0by the end of calendar\u00a0Q1 2021 subject to regulatory approvals\u00a0and shareholder consent,\u00a0sees current shareholder The Carlyle Group exit its\u00a0stake in PA.\u202f\u00a0\u00a0 PA has grown strongly during the five-year Carlyle investment period through a combination of organic and M&amp;A-led growth (seven acquisitions) which has driven global expansion. This has resulted in EBITDA more than doubling over the period of Carlyle&#8217;s investment and compound annual revenue growth of 12% since 2016. From its inception in 1943, PA has &hellip; Continue reading &quot;PA Consulting and Jacobs announce agreement on future investment and strategic partnership&quot;\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.marketnewsdesk.com\/index.php\/pa-consulting-and-jacobs-announce-agreement-on-future-investment-and-strategic-partnership\/\" \/>\n<meta property=\"og:site_name\" content=\"Market Newsdesk\" \/>\n<meta property=\"article:published_time\" content=\"2020-11-30T12:19:27+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/c212.net\/c\/img\/favicon.png?sn=NY06108&amp;sd=2020-11-30\" \/>\n<meta name=\"author\" content=\"Newsdesk\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Newsdesk\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"6 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/www.marketnewsdesk.com\\\/index.php\\\/pa-consulting-and-jacobs-announce-agreement-on-future-investment-and-strategic-partnership\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.marketnewsdesk.com\\\/index.php\\\/pa-consulting-and-jacobs-announce-agreement-on-future-investment-and-strategic-partnership\\\/\"},\"author\":{\"name\":\"Newsdesk\",\"@id\":\"https:\\\/\\\/www.marketnewsdesk.com\\\/#\\\/schema\\\/person\\\/482f27a394d4fda80ecb5499e519d979\"},\"headline\":\"PA Consulting and Jacobs announce agreement on future investment and strategic partnership\",\"datePublished\":\"2020-11-30T12:19:27+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/www.marketnewsdesk.com\\\/index.php\\\/pa-consulting-and-jacobs-announce-agreement-on-future-investment-and-strategic-partnership\\\/\"},\"wordCount\":1289,\"image\":{\"@id\":\"https:\\\/\\\/www.marketnewsdesk.com\\\/index.php\\\/pa-consulting-and-jacobs-announce-agreement-on-future-investment-and-strategic-partnership\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/c212.net\\\/c\\\/img\\\/favicon.png?sn=NY06108&amp;sd=2020-11-30\",\"inLanguage\":\"en-US\"},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/www.marketnewsdesk.com\\\/index.php\\\/pa-consulting-and-jacobs-announce-agreement-on-future-investment-and-strategic-partnership\\\/\",\"url\":\"https:\\\/\\\/www.marketnewsdesk.com\\\/index.php\\\/pa-consulting-and-jacobs-announce-agreement-on-future-investment-and-strategic-partnership\\\/\",\"name\":\"PA Consulting and Jacobs announce agreement on future investment and strategic partnership - 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The transaction, which\u00a0values PA\u00a0at \u00a31.825\u00a0billion and is expected to close\u00a0by the end of calendar\u00a0Q1 2021 subject to regulatory approvals\u00a0and shareholder consent,\u00a0sees current shareholder The Carlyle Group exit its\u00a0stake in PA.\u202f\u00a0\u00a0 PA has grown strongly during the five-year Carlyle investment period through a combination of organic and M&amp;A-led growth (seven acquisitions) which has driven global expansion. This has resulted in EBITDA more than doubling over the period of Carlyle&#8217;s investment and compound annual revenue growth of 12% since 2016. 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