KPMG Consulting, the US business services company, announced plans yesterday to buy the global consulting units of Andersen Worldwide in a move which almost completes the break-up of the professional services firm.
KPMG Consulting, which floated last year, signed a letter of intent to buy the businesses for $284 million (€313 million) in cash, and will issue new shares to lock in the Andersen partners.
The legal action facing Arthur Andersen, the US unit of Andersen Worldwide, over its role as Enron's former auditor has prompted the disintegration of the business as clients dropped the firm, partners left and rivals snapped up the remainder.
KPMG Consulting has already bought Andersen's consulting business in Hong Kong and China, and the latest agreement adds the businesses in the US, Europe, Latin America and the remainder of Asia Pacific. Partners in KPMG and Andersen in Ireland are progressing a merger. Together the two firms would have 66 partners and 1,430 employees.
The deal would add the equivalent of $1.4 billion in annualised revenues to the $2.9 billion which KPMG Consulting generated in the year to June 30th, 2001.
Mr Rand Blazer, chairman and chief executive officer of KPMG Consulting, said the firm would now enter talks to acquire the Andersen consulting practices. The final purchase price would depend on how many practices it actually reaches agreement with.
Any deal is contingent on the "satisfactory resolution" of potential liability issues facing Andersen's consulting business.
