Jacobs announces separation plans
09 May 2023
The company's board has approved a plan to create two independent companies: Critical Mission Solutions (CMS) will be a pure-play provider of technical consulting, applied science research, training, and other services to federal government agencies; while Jacobs will be a technology-enabled solutions provider focused on critical infrastructure and advanced manufacturing challenges.
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(Image: Jacobs)
The company's CMS services deliver technology-enabled solutions aligned to space, national security, nuclear remediation and 5G technology, generating some USD4.4 billion in revenue for the US-based international technical services company in fiscal 2022. CMS will continue to be led by its current president, Steve Arnette.
Streamlining the company's business portfolio in this way will enable Jacobs to become a higher-growth, higher-margin company more closely aligned with key global trends and growth sectors while enabling CMS to focus on its own strategy as a government services provider, according to CEO Bob Pragada. "As an independent company, CMS will be better able to focus on its distinct strategy and operating needs, driving further momentum in its business. We believe the separation will create value for all stakeholders," he said.
Jacobs' post-separation portfolio will combine its consulting, planning, engineering, design and programme management management capabilities to deliver "differentiated end-to-end solutions" for public and private sector clients, the company said. Excluding the businesses to be separated, these generated around USD10.5 billion in revenue in fiscal year 2022.
The US-based international technical services company is aiming to complete the separation in the second half of fiscal year 2024, subject to final approvals and other conditions.
Researched and written by World Nuclear News