Chantilly, Virginia-based defense contractor Amentum Services has signed a deal to merge with the critical mission solutions and cyber intelligence government service division of Dallas-based Jacobs. The spin-off will create one of the largest publicly-traded companies headquartered in the D.C. region.

Jacobs announced its intent this spring to spin off its CMS business to create two separate companies.

Upon completion, John Heller, current CEO of Amentum, will serve as CEO of the combined company, overseeing a newly-formed business with $13 billion in annual revenue.

Once merged, the company will have more than 53,000 employees globally, 27,000 of which have government security clearances. More than 80% of its contracts will be with government clients. It will have a combined $50 billion in contracted backlog work.

The transaction will be a Reverse Morris Trust, which means it will be tax-free to Jacobs’ current shareholders. Jacobs will retain a small stake in the combined company.

The merger is expected to close next year.

Jacobs will be a separate publicly-traded company that focuses on its data solutions and digital technologies business.

Amentum itself was formed through a spin-off in 2020, of the management services group of AECOM. Amentum acquired McLean-based DynCorp International in late-2020. In 2022, it acquired Arlington-based PAE Inc.