The cash and stock transaction has an enterprise value (EV) of approximately $3.27 billion, including approximately $416 million of CH2M net debt.

Jacobs highlighted CH2M’s expertise in major UK transport projects as a key driver of the deal.

CH2M, which is a key contractor on the multibillion-pound refurbishment of the Palace of Westminster and also the HS2 rail link, has about 20,000 staff, including around 2,500 in the UK.

Steve Demetriou, Jacobs’ chairman and CEO, said: “By increasing our industry reach and adding to our already extensive skills, this transaction enhances our value to our clients and bolsters Jacobs’ position as a premier consulting, design, engineering, construction, and operations and maintenance technical services firm.

“CH2M brings to Jacobs a talented, engaged team with capabilities and values that are very complementary to our own. Together, we will bring more solutions to our clients, give more opportunity to our employees and create increased value for Jacobs’ shareholders.

“In addition, this transaction is consistent with our M&A criteria, accelerating our ability to achieve our financial growth targets and propelling Jacobs toward our vision of providing innovative solutions for a more connected, sustainable world.”

CH2M chairman and CEO, Jacqueline Hinman, added: “We are delighted about the prospects of combining CH2M with Jacobs. Since late 2014, we’ve been transparent about our plans to pursue an ownership transition, providing sustained access to capital for growth.

“Considering all of the options, we focused on securing greater opportunities for our employees, delivering superior value to our clients and enhanced value for our stockholders, all while continuing to serve the higher purpose our company is known for, providing sustainable solutions for a better world.

“Throughout this time, we strengthened our business portfolio and performance, which put us in a position to deliver the best possible value and outcome for the future of the company. This was the unanimous choice of our Board, and the value Jacobs will provide to our stockholders, reflects genuine appreciation for our employees and the world-class work we deliver to our clients.”