KPMG Acquires Optimum Solutions

A few days ago, KPMG announced that is had acquired Optimum Solutions, an Oracle Platinum Partner that provides management consulting and systems implementations services around the Oracle enterprise suite. Optimum’s core strength is in the area of human capital management (HCM) and business intelligence. Earlier this year, KPMG also acquired EquaTerra, a provider of IT advisory services in the areas of strategy and assessment, solution design and development, implementation, optimization, contract review and benchmark analysis, among others.

This transaction is interesting because it further solidifies the fact that the Big 4 are increasingly stepping up to pursue acquisitions that allow them to enhance their practices in the management and IT consulting space. Additionally, what used to be a fairly “logical” group of buyers for IT services companies focused on Tier 1 enterprise software implementation and integration is now seeing increased competition from a new set of players, both domestically and abroad.

For example, in June, OneNeck IT services, a provider of hosted application management and managed IT hosting primarily for ERP applications, was acquired by Telephone and Data Systems, Inc. (TDS). Other interesting deals of note include Genpact ‘s acquisition of Headstrong in April and Citigroup Ventures acquisitions of Ness Technologies in June. We expect to see this continued trend of diversified buyers acquiring leading IT Services businesses with the Big 4 becoming an increasingly active participant.