Australian-based engineering consultant Sinclair Knight Merz has been bought out by Californian giant Jacobs Engineering for over a billion dollars.

Spectators say it could be the first in a raft of corporate takeovers by wealthy international groups, now that the new federal government intends to swing open the door for investment.

Insiders have called the contract “transformational” for the industry, with the SKM-Jacobs deal offering hope to the doom-and-gloom predictions of some analysts.

SKM currently employs over 6500 people, was founded in 1964 and is owned by 660 members of the group's management and long-time staff. Those lucky few hundred will reap incredible returns from the sale to Jacobs.

SKM's managing director, Santo Rizzuto, says the $1.3 billion will go a long way to strengthening their position in the market: “It uniquely positions us amongst our global peers... it adds scale, diversification and growth opportunities to our business.”

Jacobs’ President and chief executive Craig Martin said the merger was “a unique fit”.

“SKM's culture, values, and operating philosophy are very compatible with ours, making our companies an excellent fit for one another,” Mr Martin said, “our capabilities and geographies have little overlap, enabling us together to continue to expand our client relationships and provide significant opportunities for our employees. We are enthusiastic about the potential.”

The deal has been under negotiation for months, initiated during the reign of the previous government. Spectators will now wait to see what other agreements come to fruition under the commercially-friendly new federal regime.