PwC to acquire Diamond Management & Technology Consultants
25/08/2010
The $378 million cash deal points to the continued consolidation in the sector

Fuente: http://www.consultant-news.com  Fecha: 25.08.2010
 

PwC to acquire Diamond Management & Technology Consultants

PricewaterhouseCoopers LLP (PwC) has entered in to a definitive agreement to acquire all of the outstanding common shares of Diamond Management & Technology Consultants, Inc., for $12.50 per share in cash.

The transaction represents a premium of 31% to Diamond’s closing stock price of $9.54 on Monday and values Diamond at $378 million. Diamond will join the PwC Advisory practice, which ranks among the largest providers of consulting services globally.

Diamond Management & Technology Consultants, Inc. provides strategic management consulting services worldwide and earns a third of its total revenue from financial services consulting. It employs more than 500 consultants worldwide and has offices in Chicago, Hartford, New York, Washington D.C., London, and Mumbai.

Diamond reported quarterly revenue of $52 million earlier this month, a 37% year over year increase, and forecasted further revenue and earnings growth for the rest of fiscal 2011.

Last month, Aon Corp agreed to acquire Hewitt Associates Inc in a $4.9 billion deal.

Robert Moritz, US Chairman and Senior Partner of PricewaterhouseCoopers LLP, said, "We are pleased to bring to PwC a group of highly talented professionals with a proven track record of consistently delivering world class service. The acquisition reflects our long-standing commitment to provide the expertise and experience necessary to assist our clients in addressing their highest priority issues."

Adam Gutstein, President and CEO of Diamond, said, "This is an attractive all cash opportunity for our stockholders, creates exciting prospects for our people, and will provide us new and enhanced capabilities to bring to our clients as we help to address their most critical challenges and important opportunities. There's a clear strategic fit between PwC's assets and aspirations and Diamond's positioning. We have complementary cultures and very similar values, driven by a shared commitment to the highest levels of client service, objectivity, innovation, and impact."

The transaction, which has been unanimously approved by both companies' boards, is expected to close in the fourth quarter of calendar year 2010, subject to customary closing conditions, including the approval of Diamond's stockholders and antitrust clearance.