The Carlyle Group LP

03/03/2021 | Press release | Distributed by Public on 03/03/2021 04:51

PA Consulting completes investment from Jacobs

PA shareholders welcome a strategic investment from Jacobs: Creating more opportunities for our clients and people

London, UK - PA Consulting (PA),the consultancy that's Bringing Ingenuity to Life, and Jacobs(NYSE: J) today announce the successful completion of Jacobs' strategic investment in PA.

Jacobs joins PA's own people as investors in the firm, and will support its growth plans, enabling PA to work with even more organisations around the world to unlock the power of ingenuity to build a positive human future. Continued share ownership by PA employees is a key feature of the transaction.

Jacobs' investment completes following PA shareholders voting 99.9% in favour of the transaction and a UK Court approval process that became effective on 2 March 2021. Voluntary election for management rollover was fully subscribed, indicating the enthusiasm and commitment of PA partners and employees about the growth opportunity. The transaction values PA at £1.825 billion.

The completion means that the current institutional investor, The Carlyle Group, will exit its stake in PA, bringing a successful five-year investment period to a close, which saw EBITDA more than doubling over the period of Carlyle's investment and compound annual revenue growth of 12% since 2016

Since our founding in 1943, the story of PA has been one of ingenuity. Working with a wide range of clients - from start-ups with a promising idea to change the world to some of the most important global companies and organisations - to find innovative ways to be faster and nimbler, to create the successful products and services that grows businesses, delights customers, serves citizens, and improves the health of the planet.

PA and Jacobs intend to find opportunities to partner together in the marketplace, bringing our complementary capabilities together to further strengthen the ability of our teams to deliver ingenious solutions for clients.

Ken Toombs, CEO of PA Consulting, said:'The completion of Jacobs' investment marks the beginning of an exciting new chapter for PA. Jacobs' culture, values and client base are closely aligned to our own, making them a natural marketplace partner. Their complementary capabilities will further strengthen our ability to deliver innovative solutions for our clients. The overwhelming support of PA shareholders for the transaction is a testament to the great potential we all see in this partnership. We would also like to thank Carlyle for the strong partnership and support over the past five years, which has helped PA grow significantly.' Jacobs Chair and CEO Steve Demetriou said:'This strategic partnership accelerates our strategy to become a leader in bringing greater innovation and creativity to respond to current-day challenges such as climate change, cyber, urbanization and the ongoing healthcare crisis. PA has delivered strong growth over the last five years and together our organizations will set a new industry benchmark in differentiated solutions that deliver superior end-to-end value for Jacobs and PA clients, employees and investors.' Fraser Robson, a Managing Director in the Carlyle Europe Partners advisory team said:'We are proud of our work with PA and what we have achieved together. The business has demonstrated strong growth through a focus on people, innovation, and strategic acquisitions to reinforce PA's end-to-end innovation capabilities. We wish PA well and look forward to watching the company continue to thrive.'

Jacobs completed the deal on March 2, 2021 in accordance with the terms announced on November 30, 2020. The transaction was funded through a combination of cash on hand and existing debt facilities.


Media Contacts
For PA, contact Adam Adams | +44 7714 697 123 | [email protected]
For Carlyle, contact Andrew Kenny | +44 7816 176120 | [email protected]
For Jacobs, contact Vanessa Mourant | +44 7771 806566 | [email protected]

Notes to the editor
Rothschild & Co. served as exclusive financial advisor and Fried, Frank, Harris, Shriver & Jacobson LLP served as legal counsel to Jacobs.

J.P. Morgan and HSBC served as financial advisors to The Carlyle Group and PA. Linklaters served as legal counsel to The Carlyle Group and PA, and Dickson Minto served as legal counsel to the management of PA.

Note: 1 The enterprise value £1.825 billion ($2.5 billion) is based off foreign exchange rate of 1.3951 USD per GBP.

About PA
We believe in the power of ingenuity to build a positive human future in a technology-driven world.

As strategies, technologies and innovation collide, we create opportunity from complexity.

Our diverse teams of experts combine innovative thinking and breakthrough use of technologies to progress further, faster. Our clients adapt and transform, and together we achieve enduring results.

An innovation and transformation consultancy, we are over 3,200 specialists in consumer and manufacturing, defence and security, energy and utilities, financial services, government, health and life sciences, and transport. Our people are strategists, innovators, designers, consultants, digital experts, scientists, engineers and technologists. We operate globally from offices across the UK, US, Europe, and the Nordics.

Discover more at paconsulting.comand connect with PA onLinkedInand Twitter.

Bringing Ingenuity to Life.

About Jacobs
At Jacobs (NYSE: J), we're challenging today to reinvent tomorrow by solving the world's most critical problems for thriving cities, resilient environments, mission-critical outcomes, operational advancement, scientific discovery and cutting-edge manufacturing, turning abstract ideas into realities that transform the world for good. With $14 billion in revenue and a talent force of more than 55,000, Jacobs provides a full spectrum of professional services including consulting, technical, scientific and project delivery for the government and private sector. Visit Jacobs.comand connect with Jacobs on Facebook, Instagram,LinkedInand Twitter.

About The Carlyle Group
The Carlyle Group (NASDAQ: CG) is a global investment firm with deep industry expertise that deploys private capital across three business segments: Global Private Equity, Global Credit and Investment Solutions. With $246 billion of assets under management as of December 31, 2020, Carlyle's purpose is to invest wisely and create value on behalf of its investors, portfolio companies and the communities in which we live and invest. The Carlyle Group employs 1,825 people in 29 offices across five continents. Further information is available The Carlyle Group on Twitter @OneCarlyle.