PA Consulting (PA) announced that Jacobs has signed an agreement to invest in PA for a 65% shareholding in the company. The transaction, which values PA at GBP 1.825 billion (US$ 2.43 billion) and is expected to close by the end of calendar Q1 2021 subject to regulatory approvals and shareholder consent, sees current shareholder The Carlyle Group exit its stake in PA.   

PA has grown strongly during the five-year Carlyle investment period through a combination of organic and M&A-led growth (seven acquisitions) which has driven global expansion. This has resulted in EBITDA more than doubling over the period of Carlyle's investment and compound annual revenue growth of 12% since 2016.

The new strategic partnership with Jacobs will enable PA to build on this success and to accelerate its growth plan through geographic expansion, particularly in the US, and additional acquisitions. The partnership will see PA further enhance its market-leading capabilities in innovation, design, digital and technology. The private equity style investment from Jacobs will allow PA to retain its independence, alongside current culture, brand and values. The continued share ownership by PA employees is a key feature of the transaction. 

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 Dickson Minto is serving as legal counsel to PA regarding its new partnership with Jacobs.