Filing Flows › Jacobs Solutions (J) › Takeover & LBO
Is Jacobs Solutions (J) a takeover target?
A leveraged buyout at today's price plus 30% ($191.80 a share) would return about 1% a year to a private-equity buyer over 5 years; the most a buyer could pay for a 20% return is $90.48 a share (−39% against today's $147.54).
The buyout, step by step
| Entry | Amount | How |
|---|---|---|
| Offer price a share | $191.80 | today's $147.54 plus 30% |
| × shares | 118.9 million | |
| = Equity value | $22.8B | |
| + Debt refinanced | $3.6B | |
| − Cash | $1.2B | |
| + Other claims | −$13.8M | preferred stock, minority interests |
| = Enterprise value | $25.2B | 34.2× EBITDA of $737M |
| Fees | $504M | 2% of the price |
| New debt | $4.1B | 5.5× EBITDA at 7.65% a year; the limit that binds: 5.5× EBITDA |
| Buyer's own money | $21.6B | 84% of the cost |
5 years under the buyer
| Year | Revenue | EBITDA | Interest | Free cash flow | Debt left |
|---|---|---|---|---|---|
| Year 1 | $15.4B | $796M | $310M | $156M | $3.9B |
| Year 2 | $16.4B | $850M | $298M | $208M | $3.7B |
| Year 3 | $17.3B | $897M | $282M | $261M | $3.4B |
| Year 4 | $18.0B | $935M | $262M | $315M | $3.1B |
| Year 5 | $18.6B | $963M | $238M | $368M | $2.7B |
The exit and the buyer's return
| Exit | Amount | |
|---|---|---|
| Exit multiple | 27.0× EBITDA | today's trading multiple, before any premium |
| Enterprise value at exit | $26.0B | |
| − Debt left | $2.7B | |
| = Buyer's equity | $23.3B | |
| Money multiple | 1.08× | on $21.6B put in |
| Buyer's yearly return (IRR) | 1.5% |
Price against return
What the buyer makes at other premiums over today's $147.54; the IRR reaches 20% at $90.48 a share.
| Premium | Price a share | Buyer's IRR |
|---|---|---|
| 10% | $162.29 | 5.2% |
| 20% | $177.05 | 3.2% |
| 30% | $191.80 | 1.5% |
| 40% | $206.56 | −0.1% |
| 50% | $221.31 | −1.6% |
The figures used
| Figure | Amount | |
|---|---|---|
| Revenue, last 12 months | $14.2B | |
| EBITDA, last 12 months | $737M | 5.2% of revenue |
| Depreciation and amortization | $87.6M | |
| Capital spending | $91.3M | |
| Debt | $3.6B | |
| Cash | $1.2B | |
| Share price | $147.54 | on Nov 6, 2026 |
Fixed rules, the same as the interactive view's starting point: the shares are bought at today's price plus 30%, the company's debt is refinanced and fees take 2%. New debt is the least of 5.5× EBITDA, 65% of the price and the amount whose interest EBITDA covers 2 times, at 7.65% a year (SOFR 3.89% plus the high-yield B spread 3.26% plus 0.5%, rates of Oct 15, 2026). Revenue grows 8.0% in the first year — the company's own rate, held between −3% and +8% — fading to 3% by year 5; the EBITDA margin, depreciation and capital spending stay at today's share of revenue; working capital takes 10% of each year's added revenue; tax is 30% of profit after interest. Every dollar of free cash flow repays debt. After 5 years the buyer sells at today's multiple of EBITDA.
What a takeover could cost
Takeovers in its sector paid a median premium of 40% over the share price before the deal (the middle half 14.7% to 60.2%), according to the 20 merger proxies and tender-offer responses on EDGAR that state a premium. At the median, Jacobs Solutions would cost about $206.56 a share, $24.6B for all its shares.
| Premium | % | Price a share | All shares |
|---|---|---|---|
| Low end (a quarter of deals paid less) | 14.7% | $169.23 | $20.1B |
| Median | 40% | $206.56 | $24.6B |
| High end (a quarter paid more) | 60.2% | $236.36 | $28.1B |
Jacobs Solutions' latest quarter
Jacobs Solutions, Q3 FY26: revenue $4.1B (+34% year over year), operating margin 7.0%, net earnings $137M, operating cash flow $456M. The chart follows the revenue to costs, profit and cash.
Questions
Is Jacobs Solutions being acquired?
No headline, 8-K or 13D about a sale is on file in the last year.
Could private equity buy Jacobs Solutions?
A leveraged buyout at today's price plus 30% ($191.80 a share) would return about 1% a year to a private-equity buyer over 5 years; the most a buyer could pay for a 20% return is $90.48 a share (−39% against today's $147.54).
What would a takeover of Jacobs Solutions cost?
Takeovers in its sector paid a median premium of 40% over the share price before the deal (the middle half 14.7% to 60.2%), according to the 20 merger proxies and tender-offer responses on EDGAR that state a premium. At the median, Jacobs Solutions would cost about $206.56 a share, $24.6B for all its shares.
Updated Nov 8, 2026. Read automatically from SEC filings and public data; errors are possible. Not investment advice.