Jacobs has taken a 65% majority stake in the UK management consultancy firm PA Consulting in a deal which the US-owned firms says will create a strategic partnership to “capture the next wave of digital revolution.”
The investment values PA at £1.8bn. The remaining 35% stake will be held by PA’s 3,000+ employees, following the exit of existing majority stakeholder, The Carlyle Group.
“We are on the cusp of the next digital revolution as advances across 5G-driven compute power, robotics, autonomous technology, machine learning automation and geospatial technology converge to provide solutions to many of the world’s most complex challenges, including disruption to traditional business models,” said Jacobs chair and CEO Steve Demetriou. “Our partnership with PA forms a unique offering in the market that combines strategic front-end consulting and deep domain knowledge across key sectors with next generation science and technology expertise.”
Ken Toombs, CEO of PA Consulting, said, ‘’We see Jacobs as the ideal partner for PA, leveraging their client relationship networks and global platform to position us for the next phase of growth. Their purpose to create a connected sustainable world and commitment to an inclusive future for all aligns with our own purpose – Bringing Ingenuity to Life – and our commitment to innovate towards a positive human future. We look forward to continuing to deliver ingenious solutions for our clients, supported by Jacobs’ investment and our partnership.’’
Formed in 1943, PA Consulting is headquartered in London and has a number of offices around the UK, including in Manchester, Edinburgh and Cambridge. Internationally, PA has a presence in Europe and on the east and west coast of the US. It specialises in management consultancy in a range of sectors including energy and utilities, health, defence and security.
The firm specialises in innovation and transformation consultancy across a range of sectors including defence and security, health and life sciences, transport and energy and utilities. PA’s fee income rose by 10% in 2019 to £500.5m with earnings up 11% to £94.6m.
Jacobs expects to complete its 65% purchase of PA Consulting by the end of March 2021.