An agreement has been signed and approved by the boards of both
IBM and PwC. IBM will pay an estimated purchase price of $3.5
billion in cash and stock. The transaction, which is subject to
regulatory approvals and the votes of local PwC firms, will be
concluded around the end of the third quarter of this year.
The acquisition means that about 30,000 workers at PwC
consulting will join IBM’s Global Services unit. The new division
will focus on offering integrated business solutions. Customers are
expected to buy consultancy together with computer hardware and
software.
The deal could be a bargain for IBM: Information Week reports
that PwC Consulting's projected revenue for 2002 is an estimated
$4.9 billion. In 2001, IBM Global Services earned revenues of $35
billion.
The deal also releases PwC consulting from some of its
constraints as part of an accounting firm.
Doug Elix, senior vice president and group executive of IBM
Global Services said: “This is an exceptionally good fit – both
strategically and culturally. Our businesses complement each other
and we speak the same language.”
In 2000, Hewlett-Packard withdrew an offer to buy PwC’s
consulting division for $18 billion.
