Consulting Sector M&A Deals for week beginning 22nd September

businessman doing handstand on the beachRPS Group plc. (UK) to acquire Point Project Management (Australia)
Deal Size: $27.7 million Industry: Management consulting / Strategy Date: September 2014
RPS is acquiring the entire share capital of Point for A$31.0 million (€21.5 million), all payable in cash. Founded in 2006, Point Project Management is headquartered in Canberra and has offices in seven other Australian cities. The company, which employs approximately 130 permanent staff, provides services to the defence, transport, residential, retail, health and commercial property development industries. “Point has an excellent reputation and track record, particularly in the Australian defence sector. Its skills will complement the services RPS currently provides in Australia and enable us further to rebalance our business towards the non-resources parts of the economy,” said RPS chief executive Alan Hearne. Point Project Management Pty Ltd offers project management consultancy services. RPS Group PLC provides advice for the exploration and production of oil and gas and other natural resources; and development and management of the built and natural environment.

Arthur J Gallagher & Co. (USA) acquired The Benfield Group LLC (USA)
Deal Size: Unspecified Industry: Healthcare consulting Date: September 2014
Arthur J. Gallagher & Co. has declared the acquisition of The Benfield Group. The move marks an effort by the company to ramp up its employee benefit business. St. Louis-based Benfield Group is a healthcare market research, strategy and communications firm offering services in the U.S. It specialises in helping healthcare companies and enabling them to develop and implement effective employer strategies. It also conducts research on consumers, patients and physicians, thereby providing employers with strategic communications support. Hence, with this acquisition, Arthur J. Gallagher has added another feather to its cap. Arthur J. Gallagher has been focused on its employee benefit business and has been consistently strengthening the same. Its year-to-date acquisition tally touches 28, out of which 10 acquisitions, including the latest one, are in the employee benefit business. Arthur J. Gallagher & Co., together with its subsidiaries, provides insurance brokerage and risk management services in the United States and internationally. The Benfield Group LLC provides health care market research, strategy, and communications services in the United States.

The Aldridge Company, Inc. (USA) acquired Tydan IT (USA)
Deal Size: Unspecified Industry: IT consulting Date: September 2014
Two major Texas MSPs have combined forces to provide first-response support and better serve small and medium-sized enterprises (SMEs). Technology management and consulting company Aldridge has acquired Tydan IT, a provider of managed IT services concentrated in the Austin area. Aldridge, a leading provider of information technology (IT) outsourcing with elite first-response support, announced the completion of its acquisition of Tydan IT, a managed IT services specialist for small and medium-sized enterprises (SMEs) in the Austin, Texas area. Terms of the agreement were not disclosed. Clients of Tydan IT will benefit from accessing Aldridge’s mature and growing managed services practice. By providing senior knowledge on a daily and ongoing basis, Aldridge simplifies IT operations and provides faster resolution of IT issues. Tydan IT’s personnel will be retained and integrated into Aldridge’s operations. Aldridge has appointed Tydan IT Founder and CEO, Mark Glowacz, as Vice President, and he will lead Aldridge’s growing Austin office. Glowacz will report to Aldridge President and COO Patrick Wiley. “Austin is booming with a lot of startups as well as established and growing companies that are open to business best practices and can now benefit from outsourcing their IT management to Aldridge,” said Glowacz. With the Tydan IT acquisition, Aldridge enables business executives in the Austin area to save time, energy and money through a broad range of outsourced custom IT services, such as: Managed services, Professional services, Could services. The Aldridge Company, Inc. operates as a technology management, consulting, and outsourcing company in the United States.

CohnReznick LLP (USA) to merge with Watkins, Meegan, Drury & Company, LLC (USA)
Deal Size: Unspecified Industry: Management consulting / Strategy Date: September 2014
CohnReznick LLP, one of the top accounting, tax, and advisory firms in the U.S., and Bethesda-based accounting, tax, and consulting firm, Watkins Meegan LLC, have signed a letter of intent to combine practices, expected to be effective on November 1, 2014. The combination brings added bench strength to both firms and will bolster CohnReznick’s position as a leading firm in the Washington-Metro area. “We are very excited about what this combination means for our ability to serve our clients and our employees in the future,” said Mike Micholas, Watkins Meegan’s Managing Partner. “CohnReznick’s formidable Commercial Real Estate, Construction, Not-for-Profit, and Hospitality Industry Practices will provide valuable resources to our clients in those industries. All of our clients will benefit from a deeper bench of professionals with diverse technical expertise as well. And our employees will find greater opportunities for learning and growth as part of a larger organisation.” CohnReznick LLP provides accounting and consultancy services through its subsidiaries to construction, distribution, entertainment, hospitality, real estate, and manufacturing sectors.

Ericsson (Sweden) to acquire GEOSS (Germany)
Deal Size: Unspecified Industry: IT consulting Date: September 2014
Ericsson has announced that it is likely to acquire Germany-based GEOSS, an operations support systems (OSS) consulting company. The acquisition, which is subject to regulatory approval, will strengthen Ericsson’s position in OSS for communications service providers. Ericsson will take over the staff and management of 30 people. “Operators are striving to improve their ability to support user needs and address new business opportunities, manage real-time interactions and simplify their OSS/BSS systems,” said Paolo Colella, Vice President and Head of Consulting and Systems Integration Business Unit Global Services, Ericsson. GEOSS’ core competencies include consultancy, systems development, systems integration and operational support. The company, which has presence in Darmstadt, Düsseldorf, Munich and Stuttgart, specialises in creating and developing high-performance solutions for the configuration and monitoring of IP networks (Network Near Assurance), and supports leading German fixed and mobile operators in their transition to All-IP networks. “We are still a relatively young company with a small number of employees, but we have been able to play a leading role in the development and optimisation of OSS that is used to manage the networks of Germany’s leading telecom operators,” said Stephan Weber, Managing Director at GEOSS. Ericsson provides telecommunications equipment and services to mobile and fixed network operators worldwide.

CJ Olive Young Co., Ltd. (South Korea) agreed to acquire Cj Systems Co., Ltd. (South Korea)
Deal Size: Unspecified Industry: IT consulting Date: September 2014
Cj Systems Co., Ltd. provides information technology (IT) services in South Korea and internationally. It offers system management services, including strategic IT planning, system administration and management, maintaining and developing applications, and administration and introduction of ITSM systems. CJ Olive Young Co., Ltd. operates a chain of health and beauty retail stores in South Korea. The company was founded in 2002 and is based in Seoul, South Korea.

Group M Worldwide, Inc. (USA) acquired 49% stake in Haworth Marketing & Media Company (USA)
Deal Size: Unspecified Industry: Marketing consulting Date: September 2014
WPP announces that its wholly-owned media investment management company, GroupM, has acquired 49% of media agency Haworth Marketing & Media (“Haworth”) in the United States. Haworth’s billings for the year ended 31 October 2013 were approximately US$700 million with gross assets of US$87 million at the same date. The agency manages media investment for clients such as Target, Ben & Jerry’s, Beats by Dr. Dre, Honeywell, DreamWorks Animation and The Oscars. GroupM is the leading global media investment management operation. It serves as the parent company to WPP media agencies including Maxus, MEC, MediaCom and Mindshare, as well as GroupM Entertainment and Xaxis, its wholly-owned global programmatic media and technology platform. According to RECMA, GroupM manages US$105 billion in media invested by its clients. The investment continues WPP’s strategy of investing in important markets such as the United States where WPP companies (including associates) collectively generate revenues of over US$6 billion and employ approximately 25,000 people. Haworth Marketing & Media Company, a media agency, provides strategic marketing services.

Stantec Inc. (Canada) agreed to acquire Canadian engineering operations of Dessau Inc. (Canada)
Deal Size: Unspecified Industry: Engineering consulting Date: September 2014
About 1,300 employees of Laval-based Dessau Inc. will soon be part of Canada’s second-largest engineering, design and construction management company. With a bold move on Wednesday to acquire Dessau, Edmonton-based Stantec Inc. positioned itself strongly behind SNC-Lavalin Group Inc. The deal will help Stantec take part in the bidding process for the multi-billion-dollar Champlain Bridge and Turcot Interchange projects, CEO Robert Gomes said. Dessau’s international business, outside North America, is not part of the deal because it did not fit Stantec’s risk policies. “Dessau’s engineering expertise will complement our own work and strengthen our presence in the health care, water, power, energy, roads, bridges, airports, transit and community development sectors, and introduce us to telecommunications and security services,” Gomes added. Quebec has almost 25 per cent of Canada’s population and a large infrastructure market, he said. “Expanding into the province represents a substantial long-term operation in a growing market.” Stantec Inc. provides professional consulting services in planning, engineering, architecture, interior design, landscape architecture, surveying, environmental sciences, project management, and project economics for infrastructure and facilities projects in Canada, the United States, and internationally. Dessau Inc., through its subsidiaries, operates as an engineering-construction company in Canada and internationally. It offers engineering services; urban planning and landscape architecture; geotechnical, materials, and environmental engineering services; management and construction; and operations services.

Patented Acquisition Corporation (USA) to acquire Chisano Marketing Communications, Inc. (USA)
Deal Size: Unspecified Industry: Marketing consulting Date: September 2014
Think Patented has entered into an agreement to acquire Chisano Marketing Communications, an integrated marketing services company founded in 1986. Chisano provides marketing consultation, digital printing, fulfillment, and other solutions. Think Patented’s capabilities include offset and digital printing, direct mail services, literature and product fulfillment, and Website development and integration. This transaction accelerates Think Patented’s strategic plan for growth in marketing fulfillment and technology integration. “Chisano Marketing’s proprietary fulfillment software solution has made them a leader in literature fulfillment programs,” said Ken McNerney, Think Patented CEO and managing partner. “Companies with extensive national requirements have benefited from utilizing these solutions. Incorporating this technology will add depth to our existing product offerings.” Chisano Marketing Communications, Inc. operates as an integrated marketing communications company. Patented Acquisition Corporation, doing business as Think Patented, provides offset and digital. It offers promotional products printing services; conventional printing services; and mailing, fulfillment, and distribution services.

Digital Kitchen, LLC (USA) acquired Methodologie, Inc. (USA)
Deal Size: Unspecified Industry: Marketing consulting Date: September 2014
Digital Kitchen has purchased Seattle-based Methodologie for an undisclosed price. Methodologie, which specialises in brand and corporate communications, was founded as a solo shop in Seattle in 1988. The agency, which employs 17, has offices in both Seattle and New York and has worked with several national clients, including Boeing, Coca-Cola and Target. Seattle-based Digital Kitchen has offices in Chicago and Los Angeles. It employs 31 in Seattle. Its clients include AT&T, Microsoft and Brooks Running. The two agencies have been informally working together since April. For now, Methodologie will continue to operate under its brand name. Methodologie CEO Janet De Donato will retain her title. Methodologie, Inc. provides businesses communication services to customers in the United States and internationally. Digital Kitchen, LLC creates and produces branded content in various mediums.

Teho Development Pte. Ltd. (Singapore) to acquire ECG Property Services Pte. Ltd. (Singapore)
Deal Size: $17 million Industry: Management consulting / Strategy September 2014
TEHO Development signed a letter of intent to acquire ECG Property Services for $17 million. The proposed acquisition will allow TEHO Development to expand its operations in the property industry. It will also include the operations of the ECG Group which are currently not undertaken by TEHO. TEHO’s Executive Chairman and CEO Lim See Hoe said: “The Proposed Acquisition will allow TEHO to tap on the expertise of the ECG Group in the property market and achieve better operational synergies through the marketing of any current and future property development projects that TEHO will be embarking on.” The group intends to enter into a proposed joint venture in Cambodia to engage in real estate development and investment there. With the acquisition, TEHO will have a fuller range of property services to undertake the joint venture. ECG Property Services Pte. Ltd., through its subsidiaries, offers real estate services and management consultancy services. TEHO Development Pte Ltd provides real estate development and investment services.

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