Jacobs’ [J] government contracting and cybersecurity businesses, which are expected to merge with Virginia-based Amentum in 2024, account for more than a third of the revenue at Jacobs, according to material released following the Nov. 21 consolidation announcement.
Depending on the way it’s counted, Critical Mission Solutions with the cyber and intelligence business line were responsible for between 34% and 36% of the $16.3 billion in revenue at Dallas-based Jacobs during its 2023 fiscal year, according to a presentation filed last week with the Securities & Exchange Commission.
Amentum is a nearly $8-billion company with 40% of its business focused on “high-growth, high-margin” science and technology sectors, according to the presentation. Its clients and capabilities are “very complementary” with the businesses being spun off by Jacobs, according to the presentation.
Critical Mission Solutions reaped roughly $4.7-billion in revenue during fiscal 2023 with about 75% of the business coming from the United States and 25% abroad, according to the presentation. The public-private split is 82%/18%. Jacobs follows the federal fiscal year.
As executives with the companies said in November, divesting cyber and intelligence, along with Critical Mission Solutions, was a decision Jacobs made following the May 9 spinoff announcement in reaction to “inbound inquiries” from prospective buyers. Cyber and intelligence accounted for 57%, or nearly $540 million of the $947 million annual revenue at Jacobs Divergent Solutions segment.
Amentum and the former Jacobs business lines will together form a publicly-traded company, name to be determined, headed by current Amentum CEO John Heller. The new public company will be 51% owned by Jacobs’ shareholders, with an additional 7.5%-to-12% owned by Jacobs.
The spinoff of the government-related sectors will enable Dallas-based Jacobs to focus on consulting, climate response and data solutions, Jacobs said.
This story first appeared in Defense Daily affiliate publication Weapons Complex Morning Briefing.