PracticeConsultingE&Y barred from consulting activity for five years in Cap Gemini deal

E&Y barred from consulting activity for five years in Cap Gemini deal

Ernst & Young will be legally barred from competing with the consulting giant created by the sale of its consultancy arm to Cap Gemini for five years, it emerged today.

Paris-based consulting and IT giant Cap Gemini will also be able to use the E&Y brand name for up to four years under the terms of the £7bn deal announced this morning.

A five year non-compete provision has been signed by Ernst & Young.

A spokeswoman for the firm said: ‘We are not going to separately re-enter the consulting business.’

Under the deal, some 36% of the equity of the combined management consulting giant will be owned by current E&Y audit and consulting partners.

The details emerged from an analysts presentation on the deal, which also said the deal would be assumed to be effective from the second quarter of 2000 onwards, and that it would be accounted for under the French GAAP ‘pooling of interest’ method.

For more details of the deal click on this morning’s story:

Ernst & Young agrees sale of consultancy arm to Cap Gemini .

Related Articles

5 tips for SMEs to protect cash flow

Accounting Software 5 tips for SMEs to protect cash flow

5m Alia Shoaib, Reporter
Tyrie on Finance Bill 2017: ‘Making Tax Policy Better’

Consulting Tyrie on Finance Bill 2017: ‘Making Tax Policy Better’

11m Stephanie Wix, Writer
Managing partner Q&A - the year ahead: Richard Toone, CVR Global

Accounting Firms Managing partner Q&A - the year ahead: Richard Toone, CVR Global

12m Kevin Reed, Writer
Deloitte 'self-imposes exile' on government contracts to defuse PM row

Accounting Firms Deloitte 'self-imposes exile' on government contracts to defuse PM row

12m Kevin Reed, Writer
Managing partner Q&A - the year ahead: Julie Adams, Menzies

Accounting Firms Managing partner Q&A - the year ahead: Julie Adams, Menzies

12m Kevin Reed, Writer
Friday Afternoon Live: Deloitte's tech thing; PAC wants HMRC 'contingencies'; and Sports Direct

Business Regulation Friday Afternoon Live: Deloitte's tech thing; PAC wants HMRC 'contingencies'; and Sports Direct

1y Kevin Reed, Writer
Friday Afternoon Live: HMRC complaints rise; Deloitte scoops big audits; and corporate reporting woes

Audit Friday Afternoon Live: HMRC complaints rise; Deloitte scoops big audits; and corporate reporting woes

1y Kevin Reed, Writer
New head of equity capital markets for KPMG

Accounting Firms New head of equity capital markets for KPMG

1y Stephanie Wix, Writer