| | BearingPoint in the US,
which filed for
bankruptcy protection
last month, has reached
an agreement with
several parties –
including Deloitte and
PricewaterhouseCoopers –
to sell most of its
businesses.
BearingPoint and
Deloitte have entered
into an asset purchase
agreement by which
Deloitte will purchase a
“significant portion” of
BearingPoint’s largest
business unit, Public
Services, for a price of
$350m.
The purchase
agreement requires the
company to consider all
"higher and better"
offers from other
potential buyers and is
subject to bankruptcy | |
|
| | court approval,
according to a
statement.
"The acquisition of
BearingPoint's Public
Services practice would
be a compelling
strategic transaction
that would significantly
accelerate the expansion
of our federal
government services
business,” Deloitte said
in a statement.
In addition,
BearingPoint has signed
a non-binding letter of
intent to sell a
“substantial portion” of
its North American
Commercial Services
business, including its
Financial Services
segment, to
PricewaterhouseCoopers
LLP for $25m.
PwC Advisory Co. (PwC | |
|
| | Japan), is also in
advanced negotiations to
acquire BearingPoint’s
Japanese consulting
practice.
In the United States,
the proposed transaction
will integrate selected
contracts and assets
into PwC's Advisory
practice, while bringing
to the firm client
service professionals
with significant
business and consulting
expertise in industries
including energy,
utilities, insurance,
pharmaceuticals and life
sciences.
In Japan, the
strength of
BearingPoint's business
means that this
transaction will create
a combined team of over
1,500 professionals | |
|
| | which will be one of the
largest advisory
practices in the
Japanese market.
BearingPoint is also
in late-stage
negotiations with its
local management teams
to sell its European and
Latin America practices.
The company is in
separate negotiations
with other parties and
local management to sell
various Asia Pacific
practices, separate from
Japan.
BearingPoint has
requested approval to
pay millions of dollars
in retention bonuses to
hundreds of management
and director-level
employees as part of its
plans to reorganise,
according to media
reports.
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The fate of the
BearingPoint name
remains unclear. While
some of the overseas
management buyout teams
could decide to retain
it, it is unlikely that
the buyers of the US
businesses would do the
same.
The company filed for
bankruptcy protection in
the US last month under
the weight of $1bn in
debt and a 15 April
deadline to repay $200m
in loans.
BearingPoint was spun
off from KPMG in 2001.
Hurt by accounting and
infrastructure problems,
it cycled through
management and slashed
its employee headcount
in recent years. | |
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