The stock jumped 72% premarket on the news. Amentum offers technical and engineering services for programs across defense, security, intelligence, energy, and environment. Pae now has a "go-shop" period effective through Nov. 29, where it may seek alternative bids from third parties. The agreement includes a break fee, should Pae terminate the merger agreement.

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“The acquisition of PAE complements Amentum’s growth into intelligence and technology services, deepens its relationship with key agencies such as the Department of State, NASA and the Intelligence Community, and meaningfully adds to Amentum’s scale, depth of client relationships and breadth of capabilities,” said John Vollmer, Amentum’s CEO. “We look forward to welcoming PAE’s extremely talented employees to the Amentum family. Our complementary capabilities and cultures are expected to propel Amentum to the top of our market by further solidifying our value proposition of employing the best people and offering the most differentiated solutions in support of our clients.”

“This strategic combination of two market leading companies will benefit our customers and create increased opportunities for our employees while maximizing shareholder value,” said Charles Peiffer, Interim President and CEO of PAE.

ABOUT AMENTUM

Amentum is a premier global technology and engineering services partner supporting critical programs of national significance across defense, security, intelligence, energy, and the environment. We draw from a century-old heritage of operational excellence, mission focus, and successful execution underpinned by a strong culture of safety and ethics. Headquartered in Germantown, Md., we employ more thanaqui 34,000 people in all 50 states and perform work in 105 foreign countries and territories. Visit us at amentum.com to explore how we deliver excellence for our customers’ most vital missions.

ABOUT PAE

For more than 66 years, PAE has tackled the world’s toughest challenges to deliver agile and steadfast solutions to the U.S. government and its allies. With a global workforce of approximately 20,000 on all seven continents and in approximately 60 countries, PAE delivers a broad range of operational support services to meet the critical needs of our clients. PAE’s headquarters are in Falls Church, Virginia.

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PAE Interim President and CEO Charlie Peiffer said PAE has a respected history supporting U.S. projects in Japan, and this award builds on the company’s strategy to expand the delivery of innovative solutions in the Asia Pacific Region.

“We’re excited for this opportunity to continue supporting the critical missions of the Marine Corps at Iwakuni,” Peiffer said. “Our specialized expertise and established presence in Japan are ideal for us to deliver the most effective solutions on this contract.”

This is a new contract that has a 12-month base period that may be extended to June 2026 through four one-year options with an additional 60-day demobilization period. On the contract, PAE will provide maintenance and repair of facilities, including family housing, custodial services, grounds maintenance, wastewater operations, and maintenance and environmental services.