Monday, URS Corp. (URS) and Washington Group International Inc. (WNG) announced that they have signed a definitive agreement for the acquisition of Washington Group by URS in a cash and stock transaction valued at approximately $2.6 billion. The transaction will expand the capabilities of both firms and capitalize on their positions in important high growth sectors, including power, infrastructure and environmental management.The companies' combined 2006 revenues would have been $7.6 billion, the fourth highest among U.S. publicly-traded engineering and construction companies. Based on previously issued guidance, the companies would have combined 2007 revenues of approximately $8.6 billion.Under the terms of the agreement, which has been unanimously approved by the boards of directors of both companies, Washington Group stockholders will receive $43.80 in cash and 0.772 shares of URS common stock for each Washington Group share. URS expects to achieve annual pre-tax cost synergies of $50 million to $55 million in 2008. URS also expects the transaction to be accretive to cash EPS in 2008 and beyond, neutral to accretive to GAAP EPS in 2008, and accretive to GAAP EPS in 2009 and beyond, not including revenue synergies expected through the combination.The transaction is not conditioned on financing and is expected to close in the second half of 2007, URS revealed.
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June 12, 2026 17:14 ET Major central bank action was the focus this week in economic news. The European Central Bank became the first major central bank to move in response to the rising inflationary pressures in the backdrop of the conflict in the Middle East. In North America, the U.S. inflation and trade data as well as Canada’s central bank decision gained attention. The Chinese trade data was the main news in Asia.