Deloitte announced that it has signed an asset purchase agreement to acquire substantially all of the assets of the North American Public Services practice of BearingPoint out of bankruptcy for total consideration of $350 million in cash and the assumption of certain BearingPoint liabilities. BearingPoint is a global management and technology consulting company that filed for Chapter 11 bankruptcy protection on February 18, 2009. The agreement is subject to approval by the bankruptcy court, which may consider competing bids, and there can be no assurance that the purchase will be consummated.
Deloitte stated: "The acquisition of BearingPoint's Public Services practice would be a compelling strategic transaction that would significantly accelerate the expansion of our federal government services business. We have seen strong organic growth in this business over the past five years, and the addition of BearingPoint's projects and practitioners would position us for even stronger performance as government agencies in Washington and around the country confront significant challenges. The transaction, which remains subject to bankruptcy court approval, is consistent with our ongoing efforts to meet the demands of a changing market, and to add capacity in areas where we see strong future growth potential."
"We have great respect for BearingPoint, its people, and the impressive practice they have built in the public services space. If we ultimately have the winning bid and are able to consummate this purchase, we are confident that the BearingPoint team would fit seamlessly with our existing, highly talented government services group, allowing us to meet our long-term strategic objectives and further enhance our services for clients."