Jacobs to spin-off government services unit to streamline operations

Jacobs Solutions

09/05/2023 15:23

May 9 (Reuters) - Engineering and consulting firm Jacobs
Solutions Inc  J.N  said on Tuesday it will spin-off its
government services unit in a move to streamline its operations
and boost margins.
    Jacobs joins a raft of U.S. manufacturing companies,
including General Electric Co  GE.N , who have moved to cut
costs and simplify businesses over the past two years.
    Shares of the company were up 3.4% at $121.3 in morning
trade after the Dallas, Texas-based company said it will
complete the separation in the second half of fiscal year 2024.
    The Critical Mission Solutions (CMS) business which provides
services such as consulting and data analytics to U.S. and
foreign governments will be spun-off to Jacobs' shareholders,
details of which would be made public at a later date, the
company said.
    CMS president Steve Arnette will continue to lead the
business after the spin-off is completed.
    Jacobs Solutions said Centerview Partners LLC and Perella
Weinberg Partners LP are serving as financial advisers to the
company, while Wachtell, Lipton, Rosen & Katz is serving as
legal adviser.   
    
    
    

 (Reporting by Shivansh Tiwary in Bengaluru; Editing by Krishna
Chandra Eluri)
 ((Shivansh.Tiwary@thomsonreuters.com; +91 9708363192;))