IBM buys PwC Consulting
IBM has announced the US$3.5 billion takeover of PricewaterhouseCoppers’ global business consulting and technological services unit, PwC Consulting.
IBM has announced the US$3.5 billion takeover of PricewaterhouseCoppers’ global business consulting and technological services unit, PwC Consulting. PwC Consulting will be combined with the existing Business Innovation Services unit of IBM Global Services.
The deal has been approved by IBM’s board of directors and also the PricewaterhouseCoppers' leadership board. However, it still needs regulatory approval and the agreement of local PwC firms. This though, is expected to be obtained before the end of the third quarter.
"The client is the driving force behind today's announcement with PwC," says Samuel J. Palmisano, IBM president and chief executive officer. "Clients are not only looking for innovative ideas to improve their businesses, they are seeking a partner with deep business expertise and the ability to exploit leading open standards-based technology to turn these ideas into bottom-line business benefits. This acquisition underscores our commitment to this strategy,” he adds.
"Our consulting and services professionals will provide a powerful capability beginning with business innovation and extending through implementation to help clients improve their competitiveness and drive sustained growth and profitability. Together with the world-class innovations of IBM Research and our business partner offerings, this new business unit will deliver comprehensive end-to-end business and technology solutions," he continues.
Samuel A. DiPiazza, Jr., chief executive officer of PricewaterhouseCoopers, says that, "this transaction fulfils our commitment to fully separate PwC Consulting from PwC. It will unleash the consulting unit from the regulatory restraints of our industry, and will allow the business to reach its full potential. Combining PwC Consulting with IBM not only fully achieves the goals we set for the separation, it provides clients and our professionals with greater opportunities and access to innovative solutions."
After the deal is approved, PwC Consulting will be combined with the existing Business Innovation Services unit of IBM Global Services.