A.T. Kearney Officers Agree to Acquire the Firm from EDS in Management Buy-Out
November 02 2005 - 7:00AM
PR Newswire (US)
CHICAGO, Nov. 2 /PRNewswire/ -- Global management consulting firm
A.T. Kearney today announced that the firm's officers have reached
anon-binding agreement to purchase A.T. Kearney from EDS, its
parent company. Upon closing, the officers would become partners in
a newly independent A.T. Kearney. The transaction is targeted to
close by the end of this year, pending customary closing
conditions. Financial details of the agreement were not disclosed.
As part of the proposed transaction, A.T. Kearney and EDS would
enter into a services and marketing agreement. Under the agreement,
A.T. Kearney would continue to provide management consulting
services to EDS and to EDS clients. The two companies also would
pursue select joint go-to-market opportunities. "Partner ownership
is the model we believe works best in today's management consulting
environment," said Henner Klein, A.T. Kearney CEO. "For clients,
this means a more focused A.T. Kearney, with partners and staff
whose interests are aligned with client success. For partners and
staff, it means greater control of our own destiny, with increased
incentives for performance and growth." Partners in the newly
independent A.T. Kearney would own 100 percent of the voting equity
of the firm. A.T. Kearney principals also would have the option of
investing in non-voting equity shares. "This transaction would mark
the beginning of an exciting new chapter in A.T. Kearney's long
history," Klein said. "As an independent firm, we expect to tap the
entrepreneurial spirit of partners and staff, and renew our
dedication to creating value and results for clients. We've already
seen the powerful impact of sharper client focus on our business
performance in recent weeks." "When your principal strategic assets
are your people, partnership is the better model," said Ashish
Nanda, associate professor at Harvard Business School. "Partnership
has the advantage of binding together capable professionals into a
shared organization, in which they each have a financial stake,
which in turn delivers genuine commitment to produce results." A.T.
Kearney has approximately 200 partners and about 1,600 consultants
serving clients worldwide. Founded in Chicago 79 years ago, A.T.
Kearney was acquired by EDS in 1995. A.T. Kearney Executive Search
and A.T. Kearney's Maintenance, Repair and Operations Management
Group (MRO) would not be included in the transaction. EDS and the
leaders of these units are actively exploring strategic options for
them, in order to enhance value for EDS, these units and their
clients. About A.T. Kearney A.T. Kearney is one of the world's
largest management consulting firms. With a global presence that
includes offices in 34 countries, A.T. Kearney provides consulting
services in the areas of strategic operations management,
transformation and organization, and technology strategy to leading
private and public sector clients around the world. Over the past
three years, A.T. Kearney has provided management consulting
services to 69 companies out of the Fortune 100 in North America
and to 73 of the Fortune Global 100 worldwide. For more
information, visit http://www.atkearney.com/. CONTACT: Paul Raab -
A.T. Kearney (+1) 312-223-6512 Mobile: (+1) 312-925-1738 Douglas
MacDonald - A.T. Kearney (+1) 312-223-6892 DATASOURCE: A.T. Kearney
CONTACT: Paul Raab, +1-312-223-6512, Mobile: +1-312-925-1738, , or
Douglas MacDonald, +1-312-223-6892, , both of A.T. Kearney Web
site: http://www.atkearney.com/
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