June 2017: Consulting M&A Update


By Ramone Param, Associate Director, Equiteq

Accenture acquires Salesforce specialist Phase One

Accenture agreed to acquire Phase One Consulting Group, a Virginia-based digital transformation specialist for the federal market with strong capabilities in Salesforce cloud solutions. Phase One will join Accenture Federal Services upon completion of the deal.

Phase One offers secure cloud implementation and consulting services to federal agencies for projects across various government sectors. The business had backing from RLJ Equity Partners, who acquired Phase One in early 2015. The company also received an undisclosed amount of development capital from Salesforce Ventures in September of last year.

David q

HTC Global Services acquires Ciber

HTC Global Services will acquire US-based IT consulting and outsourcing firm Ciber for $93m. Ciber was founded in 1974 and grew via acquisitions to over 8,600 employees. The business now has c.2,200 employees and is believed to have experienced years of decline in its European market, resulting in the recent closure of businesses in Finland, Germany, the Netherlands, Norway, Spain and Sweden.

Ciber’s recent weak performance led to it filing for bankruptcy protections in April. HTC won the auction for the business after offering significantly more than the $50m floor price set by Capgemini.

Mad q

Equiteq advises CMF Associates on its sale to CBIZ

Equiteq was pleased to announce that it advised CMF Associates, a leading provider of financial and operational consulting services to the private equity sector, on the sale of its business to CBIZ, a national, publicly-traded professional business services firm.

Founded in 2001, CMF provides transaction and transition-focused financial, operational, and human capital solutions to private equity firms and their portfolio companies across North America. CMF has served more than 135 private equity funds across more than 500 companies with transaction advisory, office of the CFO, strategic financial planning and analysis, and executive search offerings. Specific services include post-transaction consulting and integration, buy- and sell-side carve-out, preparation for exit, dashboard and reporting development, and interim executive services.

Thomas q

Warburg Pincus to acquire stake in Tata Tech

Tata Motors and Tata Capital have agreed to sell a 43% cumulative stake in Tata Technologies to Warburg Pincus for $360m. The transaction implies a valuation of $837m for Tata Technologies, which provides outsourced design, engineering and research services to manufacturing companies.

The deal is expected to be used to reduce Tata Motors’ net debt and form part of Tata Motors’s strategy to exit non-core businesses. Tata Technologies provides outsourced design, research and development services to the automotive, aerospace and industrial sectors.

C quote

Equiteq sells behavioural assessment and development consultancy to PSI Services

Equiteq was pleased to announce the sale of the UK based A&DC Group (“a&dc”) to PSI Services. As leaders in behavioural assessment and development, a&dc provides consultancy services and a comprehensive range of ready-to-use, tailored and bespoke products across the talent management spectrum. a&dc makes a measurable difference to business performance by using behavioural assessment to select great talent into every role, develop leadership behaviours that enhance business results, and engage and motivate people to deliver at their best.

Nigel q

Selected Consulting M&A Deals in June:

june 2017 table

Note 1: Last financial year revenue multiple

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 and other deal data has not been confirmed.

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