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KPMG Consulting Inc. signs letter of intent to acquire Andersen’s global consulting practices

MCLEAN, Va., May 8, 2002 — KPMG Consulting Inc. on Wednesday announced that it has signed a letter of intent to acquire the Business Consulting units of member firms of Andersen Worldwide Societe Cooperative, also known as Andersen Worldwide.

The letter of intent is an offer to acquire up to 23 independent Andersen consulting units at a price of up to $284 million. Additionally, up to 6.5 million shares of stock will be issued over a three-year period to Andersen’s consulting partners who join KPMG Consulting in connection with the transaction.

The letter of intent covers the acquisition of consulting practices of Andersen Worldwide member firms in Europe, the United States, Asia Pacific and Latin America. The acquisitions are subject to the execution of definitive binding agreements and satisfaction of customary closing conditions with each business consulting unit.

In addition, the acquisition by KPMG Consulting of the business consulting practice of Arthur Andersen LLP in the United States is subject to the satisfactory resolution of potential liability issues. KPMG Consulting has already completed the purchase of the Andersen consulting practices in Hong Kong and in China.

The combined net revenue of the Andersen consulting practices included in these proposed transactions was approximately $1.4 billion in FY01, more than half of which was generated from Global 2000 clients. Included among the potential benefits of these acquisitions, KPMG Consulting will:

* Have significantly extended its geographic balance and reach;
* Have increased strength and coverage in the targeted industries it serves;
* Have increased its client base to more than 700 of the Global 2000 companies; and
* Have added depth and breadth of talent, skills and leadership in the business with combined global workforce of more than 16,000 employees.

“Our proposed acquisitions are consistent with KPMG Consulting’s stated business goal of strengthening our ability to service our global clients,” said Rand Blazer, Chairman and CEO, KPMG Consulting. “Our actions will join the Andersen Business Consulting world-class professionals with ours in the common pursuit of client service excellence. We are excited and delighted with what these acquisitions will mean for our clients, our professionals worldwide and our shareholders. I am also proud that KPMG Consulting, with the support of Andersen Business Consulting Units, is moving decisively and prudently to strengthen our position as a market leader for business integration services.”

“Joining with KPMG Consulting provides an outstanding opportunity for the Andersen Business Consulting clients, partners and employees,” said Gail Steinel, the managing partner of Andersen’s Business Consulting practice. “Together, the companies will be able to continue providing outstanding service to Global 2000 clients worldwide.”

About KPMG consulting
KPMG Consulting, Inc., based in McLean, Virginia, is one of the world’s largest business consulting and systems integration firms with approximately US$2.9 billion in annual revenues for the fiscal year ended June 30, 2001. Around the world, over 9,000 employees provide business and technology strategy, systems design and architecture, applications implementation, network and systems integration, and related services.

For more information about KPMG Consulting, visit the Web site at http://www.kpmgconsulting.com.

KPMG Consulting, Inc. is an independent consulting company, no longer affiliated with KPMG LLP, the tax and audit firm. Please reference our company as KPMG Consulting, since KPMG is not an abbreviated name for our business and is an unaffiliated firm.

About Andersen Business Consulting
The Andersen Business Consulting units are systems integrators with a business driven consulting approach that use technology to provide complete business solutions from strategy through implementation.