The Hanover-based KeyW Holding Corp. has signed a definitive agreement and plans to merge with Jacobs and Atom Acquisition Sub, a newly-created, wholly-owned indirect subsidiary of Jacobs, to be acquired by Jacobs for $11.25 per share in cash.
The transaction has an enterprise value, net of tax assets, of approximately $815 million, including an estimated $272 million of KeyW net debt. The merger consideration represents a premium of 43 percent to KeyW’s closing stock price on April 18, 2019. KeyW operates in the intelligence, cyber and mission IT, and analytics in the intelligence and national security communities. The merger was unanimously approved by the members of each company’s board of directors voting on the transaction.
“This transaction will propel KeyW’s capabilities further and create new opportunities for research and development our customers need to enhance their national security and intelligence capabilities,” said Bill Weber, KeyW CEO and president. “With the currently strong federal funding scenario and KeyW’s solid reputation in [intelligence, surveillance and reconnaissance], cyber and analytics services technologies, I believe combining with Jacobs will provide our customers a wide array of capabilities and services via a broad range of contracting vehicles.”
Jacobs, with $15 billion in fiscal 2018 revenue and a work force of more than 80,000, provides a full spectrum of services including scientific, technical, professional and construction- and program-management for business, industrial, commercial, government and infrastructure sectors.