Jacobs to acquire KeyW for $815 million

Jacobs Engineering said today it has agreed to purchase KeyW for $11.25 per share for a deal worth about $815 million, including an estimated $272 million of KeyW debt.

“This transaction directly aligns with Jacobs' Aerospace, Technology and Nuclear (ATN) transformational strategy of delivering innovative and unique, mission-oriented solutions for highly technical and high consequence government priorities, and further positions Jacobs as a leader in high-value Government Services,” the company said. 

Jacobs said the deal will improve its position in the intelligence, surveillance and reconnaissance sector as well as the space-based remote sensing market.

Additionally, the acquisition of KeyW provides access to offensive and defensive cyber operations and training work.

Jacobs said it expects to generate about $15 million of annual cost savings by the end of next year, primarily by “eliminating duplicative public company costs and real estate.” Additionally, the company thinks it can access more than $100 million in “potential revenue synergy opportunities from capturing incremental opportunities within the federal customer base, both in current contract vehicles and from opportunities in their respective bid pipelines.”

The deal is expected to be complete by the end of August.