Deloitte and PwC Pick Up BearingPoint Pieces

NEW YORK, March 23, 2009 

The United States firm of PricewaterhouseCoopers LLP (PwC) today announced that it has reached an agreement in principle with BearingPoint, Inc. to acquire portions of BearingPoint's North American Commercial Services practice, which includes its financial services segment. 

At the same time, PwC Advisory Co., Ltd. (PwC Japan), a PricewaterhouseCoopers firm operating in Japan, has reached an agreement in principle to acquire and integrate with BearingPoint’s entire Japan practice consulting business, which has a leading position in the business consulting market.

Detailed terms of the PwC-BearingPoint acquisitions weren’t available, though the industry focus is fairly tight: energy and utilities, insurance, and life sciences. PwC is essentially cherry picking contracts -- the offer on the table is just $25M for the selected contracts, while BearingPoint’s North American commercial services business generates approximately $400M annually. PwC leadership couldn’t say how many people would be part of the proposed acquisition but said the number is in the hundreds, not thousands, and includes BearingPoint’s offshore delivery capability in India.

Furthermore, 

Deloitte announced its intent to acquire BearingPoint’s relatively healthy North American public sector business for $350M in cash. Pricewaterhouse Coopers’ U.S. firm will acquire select pieces of BearingPoint’s North American commercial portfolio.

Sources: PwC.com
                tmcnet.com

                deloitte.com