PwC's Booz acquisition given green light
US-based consultancy giant Booz & Company votes to join PwC international network
PWC’S MERGER with consultancy giant Booz & Company has been approved.
In October this year the Big Four firm announced that it had acquired the business into its network, subject to a partner vote at Booz & Company. However, PwC member firms’ were not required to vote on the deal.
The deal will bolster PwC’s revenues of $32bn and global workforce of 184,235 staff, according to its latest financial figures for the year ending 30 June 2013. Meanwhile Booz has about 3,000 staff including 130 partners worldwide, 15 of which are UK-based.
Dennis Nally, chairman of PwC International said: “We are delighted the Booz & Company partners have approved combining with PwC and we look forward to welcoming them and their colleagues into the PwC network.
“This combination between PwC and Booz & Company will deliver an enhanced range of services for our clients, wider opportunities for our people and a clear focus on serving all of our stakeholders with quality and integrity.”
The acquisition is part of a growing trend which sees firms amalgamate consulting businesses , largely due to increased competition and a crack-down on other service lines such as audit and tax.
KPMG acquired specialist equity market advisory Makinson Cowell in April this year, while EY bought digital consulting specialists Greenwich Consulting in September.
According to the latest Accountancy Age Top50+50 data consulting has increased exponentially to £2.3bn in 2013 from £1.7bn the previous year. The survey also highlighted that KPMG is currently leading the way with a consultancy fee income of £925m, followed by Deloitte’s £524m, PwC’s £438m and EY’s £416m.
The consultancy split from Booz Allen Hamilton, which focuses on US government consulting, in 2008. Booze Allen Hamilton became the subject of controversy recently, when former employee Edward Snowden leaked government secrets to the press, CityAM reports.
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