Deloitte announced that it has agreed to buy the North American public services unit of the consulting firm BearingPoint for $350 million in cash, as the latter pursues a prearranged bankruptcy plan. BearingPoint filed for bankruptcy in February, and the judge in that case must approve the Deloitte sale agreement. The judge may also consider competing bids for the business.
In its court filings, BearingPoint said that clients of its technology and management consulting services include all 15 United States federal cabinet-level departments. In 2006 and 2007, it said, about 28 percent of its revenue came from the federal government, including government-sponsored enterprises, and about 11 percent of its revenue came from the Department of Defense alone.
“The acquisition of BearingPoint’s Public Services practice would be a compelling strategic transaction that would significantly accelerate the expansion of our federal government services business,” Deloitte said in a statement.
BearingPoint, which was spun off from KPMG in 2001, said it gets more than a quarter of its revenue from the federal government. The company, which is based in McLean, Va., said it would use the bankruptcy process to carry out a “prearranged” restructuring plan that would wipe out existing shareholders.