Jacobs Engineering Group has finalized a strategic investment to acquire a 65% majority stake in PA Consulting from The Carlyle Group, which exits its position after a successful five-year partnership. This transaction is uniquely structured as a "private equity style" deal to ensure the consultancy retains its independence, brand identity, and distinct corporate culture. The remaining 35% stake is retained by the target's employees, reinforcing the firm’s long-standing partnership model and aligning interests between the management team and the new industrial sponsor. The strategic rationale for the move centers on creating a global benchmark for technically-driven solutions by combining the target’s innovation-led advisory with the group’s massive global delivery platform and client base. The partnership aims to accelerate the target’s growth trajectory through geographic expansion, specifically targeting the US market, and enhanced inorganic growth via future bolt-on acquisitions. Furthermore, the integration allows the group to significantly bolster its capabilities in design, digital transformation, and cybersecurity. This move represents a major step in the group’s transition toward higher-value consulting services, positioning the combined entity as a leader in end-to-end innovation capability across the public and private sectors.

PA CONSULTING, which reported an EBITDA margin of LOGIN in 2019, is valued in this transaction at an EV/EBITDA multiple of LOGIN, representing a LOGIN premium to the 11.1x average currently observed in the Business Services sector.

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