2 October 2002
$3.5B PwC buy makes IBM No. 1 consulting firm
Armonk, N.Y. – IBM said Wednesday it has completed the acquisition of PricewaterhouseCoopers consulting unit, PwC Consulting, and has now become the world's largest consulting services organization, with operations in more than 160 countries.
IBM said the deal, initially announced 30 July, was overwhelmingly approved by PricewaterhouseCoopers member firms and partners globally and has received all regulatory clearances including in the U.S. and the European Union. Under terms of the transaction, IBM paid PricewaterhouseCoopers approximately $3.5 billion in cash and stock.
The combination becomes a new global business unit, IBM Business Consulting Services, comprising more than 30,000 IBM and 30,000 transferring PwC Consulting professionals. As a result, IBM Business Consulting Services becomes the world's largest consulting services organization. IBM Business Consulting Services will be part of IBM Global Services.
Ginni Rometty, general manager of the new IBM consulting unit, said that, following the 30 July definitive agreement, IBM and PwC Consulting assembled a transition team of more than 600 professionals to plan for and manage all aspects of the expected integration of more than 60,000 client service professionals and staff.
As part of this process, Business Consulting Services determined that it would adopt IBM's sector and industry segmentation and PwC Consulting's key solution areas.
"This union creates a new category in the consulting field. We've combined two organizations with complementary skills and cultures, and which share a vision of fusing business insight and technology in a way that can significantly benefit a client's bottom line," said Rometty. "Together, we can offer the world's most complete range of consulting services."
IBM named three geographic leaders for the new organization: Mike Collins, General Manager, Business Consulting Services – Americas; David Dockray, General Manager, Business Consulting Services – Europe, Middle-East and Africa; and Hideki Kurashige, General Manager, Business Consulting Services – Asia Pacific. Collins and Dockray were previously theater managing partners of PwC Consulting. Kurashige-san was previously CEO of PwC Consulting in Japan. All three will report directly to Rometty.
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