Monadnock Research - 30 May 2009

NEW YORK -- The $44 million sale of a significant portion of BearingPoint's North American Commercial Services business to PricewaterhouseCoopers (PwC), including its Financial Services segment and associated Global Delivery Centers (GDCs), has been approved by the US bankruptcy court overseeing the firm's restructuring and liquidation of certain assets.

Under the terms of its winning bid at an auction concluded on 28 May, PwC will acquire the majority of BearingPoint's Commercial Services unit. A subsidiary of PwC had separately agreed to purchase BearingPoint's GDC in Bangalore, India in a transaction that did not require approval of the US Bankruptcy Court. The total consideration for these transactions is $44 million, subject to contractual adjustments that include the order of the U.S Bankruptcy Court becoming final. This is an increase of 76 percent from the original $25 million agreed by the firms on 17 April for the sale of these operations.

The Commercial Services unit transaction is expected to be completed by the end of June, subject to customary closing conditions. The acquisitions of BearingPoint's two GDCs are expected to be executed in the coming months.

"The addition of these assets and consulting resources of BearingPoint's North American Commercial Services practice is part of our long-term plan to support the strategic growth of our leading Advisory business," said Juan Pujadas, PricewaterhouseCoopers' Global and US Advisory leader. "We look forward to the completion of these transactions and the benefits that they will bring to our clients in the US and around the world."

BearingPoint also entered into a share sale agreement with PwC Advisory Co., Ltd. (PwC Japan) for the sale of the firm's Japanese business. BearingPoint expects to generate cash of approximately $45 million in connection with that transaction.

BearingPoint and PwC say they are working together to help ensure a seamless transition for clients and employees, including the continuity of existing engagement teams, to provide uninterrupted provisioning of consulting services. Tom DeGarmo, BearingPoint's executive vice president of Commercial Services, and his management team will join PwC to help provide leadership and continuity to aid in successful transition and integration. Jefferies & Company was PwC's financial advisor on the transactions and WilmerHale LLP and Linklaters represented PwC as legal counsel.

PricewaterhouseCoopers' business advisory professionals provide clients with consulting services in the areas of operations, finance, organizational strategy and structure, process improvement, human resources effectiveness, technology integration and implementation, risk mitigation and crisis management. PwC's global organization has more than 155,000 staff serving clients in 153 countries worldwide.

BearingPoint release
PwC release

Related Content

·  BearingPoint Signs Agreement to Sell North American Commercial Business to PwC; Court Approves Deloitte Acquisition of Public Sector Practice ·  PricewaterhouseCoopers Agrees to Purchase BearingPoint Japan for $45 Million ·  BearingPoint Agrees to Sell Consulting Groups to Deloitte and PwC