KPMG Consulting announced today that it had signed a definitive agreement to hire approximately 140 partners and 1,400 professionals and staff members from the U.S. business consulting operation of Arthur Andersen LLP. The total consideration paid will be approximately $63 million.
This transaction, which is expected to close in July, has been in process since KPMG Consulting’s announcement on May 8th that it had signed a Letter of Intent to acquire up to 23 independent Andersen consulting units worldwide.
“We look forward to welcoming these skilled professionals into KPMG Consulting’s family,” said Rand Blazer, Chairman and CEO, KPMG Consulting. “This team will complement our already strong group of talented U.S. professionals. We anticipate that during the quarter ending in September this team could deliver approximately $65 million of additional net revenue.”
“Becoming part of the leading systems integrator in the U.S. and helping KPMG Consulting capture new clients is an exciting opportunity,” said Gail Steinel, the managing partner of the Andersen U.S. business consulting practice. “Working with KPMG Consulting, we will become part of a team that continues to provide the first-class service clients have come to expect from both organizations.”
KPMG Consulting has also signed definitive agreements to acquire Andersen consulting practices in Japan, Norway, Finland, Switzerland and Sweden. As previously announced, KPMG Consulting also has acquired significant portions of the Business Consulting units of member firms in Australia, Hong Kong and China.
Discussions to acquire Business Consulting Practices of certain other Andersen member firms are continuing.