Mclean, Va. (June 11, 2002) -- KPMG Consulting has bolstered its operations in Europe with a deal to acquire KPMG Consulting AG, the German, Swiss, and Austrian consulting units of KPMG DTG, a firm with approximately $540 million in gross revenue and 3,200 professionals.Under the terms of the agreement, KPMG Consulting will acquire KCA for $685 million, less net debt. KPMG Consulting said it plans to finance the transaction through a combination of debt and equity to be raised in the public markets prior to closing. KPMG Consulting will also issue KCA employees 3.8 million options vesting over three or four years. The transaction, which has been approved by both boards of directors, is expected to close this summer, subject to regulatory approval.
"This transaction represents an excellent fit that will enable KCA to grow," said Harald Wiedmann, chairman of KPMG DTG. "Joining with KPMG Consulting provides an outstanding opportunity for the professionals and staff of KCA."
KPMG Consulting earlier announced a deal to acquire the business consulting units of Andersen member firms in Japan, Norway, Finland, Switzerland, and Sweden, and is continuing discussions to acquire other Andersen member firms.
-- Electronic Accountant Newswire staff
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