PracticeConsultingMerrill Lynch positive on Atos Origin/KPMG Consulting deal

Merrill Lynch positive on Atos Origin/KPMG Consulting deal

The EUR657mn acquisition of KPMG Consulting by French IT services company Atos Origin has been viewed as a long term "Strong Buy" by Merrill Lynch.

The investment bank’s analyst Ariel Bauer believes that Atos Origin will strengthen its presence in the UK, which will add up to 15% of the company’s revenues. KPMG Consulting will account for 17% of Atos Origin’s revenues as a whole.

Bauer feels Atos Origin’s past record with integration will see it through any potential problems, but the process is likely to take 6-12 months.

The deal has cost Atos Origin 1.1x sales, which is in line with the industry average, and considerably lower than the price Cap Gemini paid for Ernst & Young’s consulting arm, which equated to around three times revenues. It also sees a lock-up agreement of four years for consulting partners and one year for audit partners.

Related Articles

5 tips for SMEs to protect cash flow

Accounting Software 5 tips for SMEs to protect cash flow

3m Alia Shoaib, Reporter
Tyrie on Finance Bill 2017: ‘Making Tax Policy Better’

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

9m 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

10m 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

11m Kevin Reed, Writer
New head of equity capital markets for KPMG

Accounting Firms New head of equity capital markets for KPMG

11m Stephanie Wix, 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

10m 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

10m 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

10m Kevin Reed, Writer