February 2017: Consulting M&A Update

 By Ramone Param, Associate Director, Market Intelligence & Buyer Coverage, Equiteq.

Blackstone acquires Aon’s human resources outsourcing business

The Blackstone Group agreed to pay up to $4.8bn to acquire Aon’s human resources outsourcing business. The Aon unit processes work benefits for 15% of the US population and is a provider for cloud-based human resources management systems. Blackstone is believed to have prevailed over buyout firm Clayton Dubilier & Rice in an auction for the business.

Aon acquired the business in 2010 as part of its $4.9bn acquisition of Hewitt Associates. The transaction with Blackstone is expected to enable Aon to focus on growth areas like cybersecurity and health insurance, while using part of the proceeds to buy back shares.

The deal will be structured whereby Aon receives $4.3bn in cash, plus up to another $500m in earn-out.


DWS acquires SMS with plans to create “leading Australian IT services provider”.

DWS (ASX:DWS) is acquiring SMS Management and Technology (ASX:SMX), valuing the business at $124m. The acquisition will result in the combination of a range of IT consulting, managed services and labor hire services. The deal is also expected to increase the range of government and blue chip clients that both businesses can service. DWS identified cost synergies as part of the transaction of at least $5m per annum, along with efficiency improvements and cross selling opportunities.


Capgemini acquires TCube Solutions and Idean

TCube Solutions is an insurance IT services firm and the largest independent specialist in Duck Creek Technologies. Idean is a fast-growing digital strategy and experience design consultancy. The acquisitions fit with Capgemini’s strategic objectives to accelerate the transition of its business, particularly in North America.  

 

 

 


Equiteq advises McKinney Rogers on sale to GP Strategies.

We were pleased to announce that we advised McKinney Rogers on its sale to GP Strategies Corporation (NYSE: GPX), a Maryland-based performance improvement solutions provider. Founded in 1999 with offices in New York and London, McKinney Rogers provides strategy-through-implementation services with a proven expertise for driving sustainable culture and process transformation. The methodologies McKinney Rogers has developed were derived from special forces training and have been adapted to meet the dynamic needs of global business.

Note 1: Based on FY 2016 revenue and data from Pitchbook

Important Notice: This article has been compiled using our daily activities in the industry that provide us with unique market intelligence, along with various third party information sources. In many cases, valuation metrics have not been confirmed with company press releases.

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