Keane Expands BearingPoint Acquisition to Include Parts of Its North American Commercial Business
BOSTON -- Keane has entered into an asset purchase agreement with BearingPoint to purchase a portion of its North American commercial services business.
Keene agreed to acquire a portion of BearingPoint North American Public Services business in June, including its New York City practice. That acquisition will strengthen Keane's state and local government business, and had been expected to close before the end of June.
"We welcome the skilled people of BearingPoint to the Keane team," said Mani Subramanian, Chairman and CEO of Keane. "This agreement underscores our commitment to optimizing our clients IT investments by delivering solutions that emphasize local accountability and a flexible mix of global resources. We feel the strong talent coming from BearingPoint is a synergistic match with our deep onsite knowledge and hands-on approach to delivering high value, meaningful and measurable results."
Keane serves clients in financial services, insurance, healthcare, life sciences, manufacturing, retail, telecom, transportation, travel and hospitality, energy and utilities, and public services.
Subramanian continued, "We are also excited about the new clients this acquisition brings and pledge to them that we will earn their respect and the continuation of these relationships into the future."
"Keane's ability to optimize our clients' IT investments is possible because of our focus on developing and delivering high quality, repeatable services and solutions," explained Marv Mouchawar, EVP of Keane's Global Practices & Products. "This focus is driven by our Practice Groups which enables Keane to offer an impressive range of core application services, supported by our infrastructure services and business process outsourcing offerings."
PricewaterhouseCoopers' US member firm (PwC) completed its $44 million purchase of the majority of BearingPoint's North American Commercial Services practice on 16 June, which included a significant portion of BearingPoint's North American Commercial Services business, including its Financial Services segment. As part of the agreement, PwC assumed $39 million in liabilities, making the total transaction amount $83 million.
Affiliates of PwC also entered into definitive agreements to purchase the equity interests of BearingPoint Information Technologies (Shanghai) Limited, a subsidiary of BearingPoint that operates a global development center in China, and certain assets of a separate global development center in India. The China and India transactions are expected to close within the next several months.
PwC Japan recently acquired BearingPoint's business in Japan for approximately $45 million in a transaction that closed 11 May. Approximately 1,200 BearingPoint professionals joined PwC Japan in that acquisition.
Deloitte closed the purchase of BearingPoint's North American Public Services practice on 8 May for around $350 million. More than 4,000 BearingPoint staff joined Deloitte's Federal and Public Sector practices as a result of that acquisition.
BearingPoint filed a voluntary petition for Bankruptcy 18 February. The firm said at the time that it had no plans to sell-off subsidiaries and hoped to emerge from bankruptcy by the end of May. It reported assets of $1.76 billion and debts of $2.31 billion in February.
Finalization of this transaction is subject to customary closing conditions and securing approval by the court overseeing BearingPoint's restructuring. Keane and BearingPoint say they are working together to help ensure a seamless transition for clients and employees, including the continuity of existing engagement teams while providing uninterrupted services. Subject to customary closing conditions, the sale is expected to be consummated in mid-July.
Keane has been providing application, infrastructure, and business process outsourcing services for nearly 45 years. The firm has close to 12,000 staff serving clients globally from offices in North America, Europe, the Middle East, India, and Asia.
*** 20 July 2009 Update ***
Keane completed the acquisition of portions of BearingPoint's Commercial services business in North America on 20 July. The firm also also announced completion of its acquisition of certain BearingPoint Public Sector business operations on 13 July. Collectively, more than 100 professionals joined Keane as a result of these acquisitions.
Keane release
Keane Commercial transaction closing release
Keane Public Service transaction closing release