Consulting Sector M&A Deals for week beginning 9th November

businessman doing handstand on the beachVisuell Planering & Praktisk PPM (Sweden) to acquire IT Consulting Business in Sweden from Dovre Group AB
Deal Size: Undisclosed Industry: IT Consulting Date: November 2015
Dovre Group’s fully-owned Swedish subsidiary Dovre Group AB has signed today, November 5, 2015, an agreement to sell its IT consulting business in Sweden to Visuell Planering och Praktisk PPM AB, a Swedish privately owned company. Three Dovre Group AB’s employees and all customer contracts will be transferred to the buyer effective immediately. ‘The transaction is good news for our staff and clients in Sweden,’ comments Patrick von Essen, CEO of Dovre Group. ‘The new combined team is stronger, and will be able to support clients better than before.’ The parties have agreed not to disclose the value of the transaction. As a consequence of the transaction, part of the goodwill of Dovre Group’s consulting segment will be allocated against the purchase price and the Group will record a non-recurring, primarily non-cash item totaling approx. EUR -0.4 million in the fourth quarter. The item recorded does not affect Dovre Group’s guidance for 2015, published on October 1, 2015. (http://www.4-traders.com)

Deloitte (Australia) acquired Cloud Solutions Group (Australia)
Deal Size: Undisclosed Industry: IT Consulting Date: November 2015
Deloitte Australia has purchased systems integrator and Cloud consulting firm, Cloud Solutions Group (CSG). Cloud Solutions Group CEO, Josh Rubens, will become a Deloitte partner with other directors and staff joining Deloitte in Melbourne. “Deloitte’s brand, scale and breadth of services provide access to a broader set of offerings and value for our clients, as well as opportunities for career advancement for our staff and increased potential to grow their careers,” Rubens said. Deloitte technology consulting partner, Kevin Russo, said it was an important transaction that will build its technology practice. “The transaction with CSG confirms the rapid growth of Cloud technologies and how effective CSG has been at disrupting the market,” Russo said. “It enables us to build on our current model for Cloud and infrastructure advisory services, to include implementation and managed Cloud-based solutions. “This is an innovative step for our technology practice. We can now offer our clients business driven technology solutions, hosted on next generation hybrid cloud services. It also supports our application modernisation offering, allowing us to assist clients at all levels of the technology stack.” CSG maintains partnerships with companies such as Amazon, NEXTDC and Nimble Storage, VMware, EMC, Citrix, IBM and HP. Deloitte Australia CEO, Cindy Hook, said it will continue to make strategic investments. It has been building its technology consulting portfolio through acquisitions of companies such as Dataweave and Qubit. “Integrating technology-based solutions with the quality, custom-designed experiences clients now want, is fundamental to future business success,” Hook said. “We will continue to make considered, strategic investments that are adjacent to our capabilities and better enable our private and public sector clients to respond to the rapid changes affecting their markets and customers.” (http://www.arnnet.com)

Mercer, Inc. (USA) agreed to acquire Gama Consultores Associados (Brazil)
Deal Size: Undisclosed Industry: Financial Advisory Date: November 2015
Mercer announced Monday it is acquiring Brazilian actuarial consulting and auditing firm GAMA Consultores Associados. Terms of the deal, which is expected to close before the end of the year, were not disclosed. Mercer said in a news release the purchase will expand Mercer’s footprint in Brazil beyond its existing offices in Sao Paulo and Rio de Janeiro. “Growth in the Brazilian market is part of our aim to bring innovative and market-leading solutions to clients everywhere they operate,” said David Anderson, Mercer’s president, growth markets region, in the news release. “The combination of GAMA and Mercer will provide a business partner for growth to multinational clients operating in Brazil as well as local and regional clients seeking to expand outside of Latin America.” GAMA provides actuarial consulting and auditing services for pension and health plans in Brazil; the firm also develops and designs pension plans. (http://www.businessinsurance.com)

PadillaCRT (USA) acquired Joe Smith, LLC (USA)
Deal Size: Undisclosed Industry: Marketing Consulting Date: November 2015
PadillaCRT, one of the top 15 independent public relations and communications agencies in the country, announced today it has acquired Joe Smith, a boutique brand strategy firm in Richmond, Va. Joe Smith brings a seasoned team of brand professionals to expand and enhance PadillaCRT’s existing expertise in brand strategy and execution. Joe Smith co-founders Barry Saunders and Christian Markow will join PadillaCRT’s executive leadership team. The seven-member firm will be the brand consultancy of PadillaCRT, operating under the Joe Smith name and taking advantage of PadillaCRT’s full suite of creative and digital capabilities. “We’re thrilled to bring the talents of Barry, Christian and the Joe Smith team to PadillaCRT,” said Lynn Casey, PadillaCRT CEO. “This acquisition aligns with our growth strategy and with our commitment to helping clients achieve their purpose and make strong connections with the people who are important to their success.” PadillaCRT’s Kelly O’Keefe, who also chairs the creative brand management track of the nationally acclaimed Virginia Commonwealth University’s Brandcenter graduate program, will continue to work closely with Joe Smith. Prior to forming Joe Smith, Saunders and Markow led the Richmond office of Prophet, a global brand and marketing consultancy. They founded Joe Smith in 2013 to build purpose-led brands that deliver meaningful experiences and noteworthy business results. Over the course of two years, Joe Smith has delivered brand development, experience and engagement programs for GE, Chick-fil-A, BH Media Group’s Richmond Times-Dispatch, The College of William & Mary, and Keystone Insurers Group, among many others. Saunders said that Joe Smith considered PadillaCRT a kindred spirit in both culture and aspirations. “As part of our growth plan, Christian and I imagined partnering with a very human and highly acclaimed organization like PadillaCRT,” he said. “This acquisition expands opportunities for both of us to do work that matters. Joining forces with PadillaCRT was timely as growth was accelerating rapidly at Joe Smith,” Markow said. “Both firms are dedicated to helping clients develop meaningful brands, so it felt like a natural next step. We share an unwavering focus on defining a brand’s purpose and on crafting the story and experiences that bring it to life for our clients and their customers.” (http://agrimarketing.com/s/99817)

Perkins+Will, Inc. (USA) acquired Portland Design Associates (UK)
Deal Size: Undisclosed Industry: Engineering Consulting Date: November 2015
Architecture and design firm Perkins+Will has acquired the branding, retail strategy, and design consultancy Portland Design Associates, which is based in London. Boasting a portfolio comprising British Land, Heathrow Airport, St. Pancras International, Diageo, HMS Host, CNN, and TDIC, Portland will become the latest creative services business to join the Perkins+Will group of companies, which also includes London-based Pringle Brandon Perkins+Will. While Portland will maintain its own brand and operate as an independent entity, the two enterprises will work closely together to deliver “future-proofing” insights to clients seeking compelling brand engagement strategies for their customers. Perkins+Will President and CEO Phil Harrison said: “The customer experience is an integral component of every project we undertake around the world. Whether it’s a hospital or an airport, a university campus or a hotel, it’s essential that the places we design really engage the people who visit them, work in them, and live in them, “Our clients will benefit from Portland’s consumer insights, creativity, and strategic thinking, and Portland’s clients will benefit from Perkins+Will’s global reach and broad architectural, design, and planning expertise.” While Perkins+Will has already engaged Portland as a strategy consultant on various projects in the past, the permanent union of the two companies will strengthen and expand both of their service offerings. It will also allow Portland to work closely with Perkins+Will’s Branded Environments practice to service a greater number of clients globally. Portland Managing Director Ibrahim Ibrahim, said: “We consider our work a kind of anthropology, in a way—a study of human interaction with brands and places and how we translate that into compelling, user-centric customer experiences, “Our experience shows us that customers are increasingly responding to personalization and hybrid spaces where traditional categories have been broken down and lines have been blurred—so, for example, a grocery store that is also a restaurant and a cooking school, or a fashion store that puts on yoga classes and knows a customer’s personal preferences. “The fact is, retail is ubiquitous and has an impact on all sorts of spaces, from museums to hotels to hospitals to schools. We are thrilled to be able to bring this knowledge and expertise to Perkins+Will clients worldwide.” Founded in 1987, Portland and its 40 employees have been under Ibrahim’s leadership since 2007. Ibrahim will continue to serve as Managing Director. (https://bdaily.co.uk)

NMG Consulting Limited (Singapore) acquired Flaspohler Research Group, Inc. (USA)
Deal Size: Undisclosed Industry: Business Consulting Date: November 2015
Specialist financial services consultancy NMG Consulting has acquired US-based Flaspohler Research Group (FRG) to deepen its range of North American insights and analytics offerings. FRG serves clients across a broad spectrum of industry segments including life reinsurance, non-life reinsurance, corporate and commercial lines insurance, and managed health care. With this acquisition, NMG will be able to provide its clients a wider complement of products and a deeper presence in North America. Mark Prichard, CEO of NMG Consulting (Global) said: “This acquisition is a major step for NMG, and aligns perfectly with our desire to move into the non-life segments and expand our presence in the US. FRG has a 30-year history of serving US clients across diverse sectors and in particular through commercial lines and non-life reinsurance studies. We are excited to welcome Rick Flaspohler into NMG Consulting and collaborate with him to develop a strong suite of products for the US market and globally. Rick has deep experience and relationships in the US and Europe. We look forward to integrating FRG into NMG and making its capabilities an integral part of our programs.” Rick Flaspohler, Founder of Flaspohler said: “I look forward to working with NMG and its global pool of resources and talent. Together, FRG and NMG will offer clients unique and valuable propositions and over time, FRG’s clients will gain enormous benefits through the addition of new capabilities and expertise.” (http://markets.financialcontent.com)

ArchiMed (France) acquired a majority controlling stake in Deallus Consulting (UK)
Deal Size: Undisclosed Industry: Healthcare Consulting Date: November 2015
ArchiMed, Europe’s fist independent private equity healthcare specialist, acquires majority control of Deallus Consulting today. Deallus is a global life sciences industry consultant working with 25 of the world’s top 30 pharmaceutical, biotechnology and vaccine companies, and a wide range of small and medium-size firms. Employing extensive proprietary data and competitive intelligence, Deallus provides a full range of consulting services, advising on everything from product introduction to processes for sustaining corporate innovation. Since Deallus’ founding in 2004, annual revenue growth has averaged some 20 percent. Turnover in the company’s most recent fiscal year was £15 million. Deallus’ 80 consultants work from headquarters in London, and offices in New York, Los Angeles, Princeton, Tokyo and Singapore. “Deallus does exactly what a specialist consultant should do, it inspires clients to develop best-in-class strategies through exceptionally deep market understanding and insight,” says Robin Filmer-Wilson, a managing partner of ArchiMed. “We intend to accelerate the growth of Deallus by providing access to new accounts, aiding recruitment and helping to set up additional offices globally.” ArchiMed is also reviewing a number of possible bolt-on acquisitions for Deallus. No debt was used in the Deallus transaction, which was the result of a proprietary process. Senior managers of Deallus have reinvested all proceeds from the deal into the group, demonstrating their faith in ArchiMed’s plans and their economic alignment with ArchiMed. “We are excited to work in partnership with ArchiMed and leverage their networks in both the consulting and healthcare industries to take Deallus into the next phase of its growth,” says Claudio D’Ambrosio, the consultancy’s chief executive. (https://www.pehub.com)

A group led by Bernhard Capital Partners Management LP (USA) acquired ATC Group Services, Inc. (USA)
Deal Size: Undisclosed Industry: Environmental Consulting Date: November 2015
A group led by Bernhard Capital Partners has acquired ATC Associates Inc., a Lafayette-based environmental consulting, industrial hygiene and engineering firm, from Cardno Limited, the Australia-based global contractor that has owned it since 2012. ATC Associates was founded in 1982 and provides environmental consulting, industrial hygiene, geotechnical engineering, government services and construction materials testing and inspections. It has 1,350 employees in more than 70 locations throughout the U.S. and revenues of around $180 million a year, according to CEO Bobby Toups., who is based in the company’s Lafayette corporate headquarters. Under its new ownership, ATC Associates Inc. will maintain all 70 offices. Toups and the remainder of the company’s existing management team will remain in place with the company. No staff changes are expected. Terms of the deal were not disclosed, but Cardno paid $106 million when it acquired the company three years ago. Toups says while Cardno was a “a good group to work with,” the new ownership is a much better fit for ATC Associates. “Jim Bernhard is an excellent businessman,” says Toups. “We’re really excited. To be privately held again, especially with a group of guys like the Bernhard guys, is great for us and will help us grow substantially.” The ATC acquisition comes just a week after another significant acquisition by one of the portfolio companies under the expanding BCP umbrella. On Nov. 6, Bernhard LLC acquired The MCC Group, a 57-year-old Metairie-based mechanical and industrial construction company with a network of clients and fabrication facilities throughout the southeast. Bernhard LLC also owns Bernhard Mechanical, TME Engineering, and EP Breaux Electrical, making it one of the largest design-build mechanical, electrical and plumbing firms in North America. With the addition of ATC Associates, BCP now has four separate portfolio companies: Bernhard LLC, Epic Piping, Brown and Root, and ATC Associates. All are run independently with independent management teams, many members of which worked under Jim Bernhard for years at The Shaw Group, which he founded and grew into an industrial services, engineering, utilities and environmental consulting powerhouse. (https://www.businessreport.com)

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