IBM and PricewaterhouseCoopers today announced that IBM would acquire PricewaterhouseCoopers’ global business consulting and technology services unit, PwC Consulting.
According to IBM, the two companies have signed a definitive agreement approved by IBM’s board of directors and PricewaterhouseCoopers’ leadership board.
Under the terms of the agreement, IBM will pay PricewaterhouseCoopers an estimated purchase price of $3.5 billion in cash and stock.
The transaction is subject to regulatory approvals and approval of local PwC firms through votes of their partners, and is expected to be concluded around the end of the third quarter. PwC Consulting will no longer pursue its planned initial public offering.
PwC Consulting, with estimated fiscal-year 2002 consulting revenues of approximately $4.9 billion, excluding client reimbursables, and some 30,000 employees, will be combined with the Business Innovation Services unit of IBM Global Services, creating a new global unit.
Ginni Rometty, currently general manager of IBM Global Services – Americas, will become general manager of the new unit, reporting to Doug Elix, senior vice president and group executive, IBM Global Services.
This new global business unit will reportedly pull from the extensive portfolio of IBM capabilities to offer clients integrated solutions through business and technology consulting, industry insight and business process expertise.