KPMG to Pay $63M for Andersen Unit
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MCLEAN, Va. (AP) _ KPMG Consulting Inc. agreed Wednesday to bring on board 140 partners and 1,400 workers from the U.S. consulting arm of troubled rival Arthur Andersen LLP in a deal worth about $63 million.
KPMG, based in Mclean, Va., said it expects the latest deal to add $65 million to revenue in the first quarter of fiscal 2003. KPMG posted revenue of $2.9 billion in fiscal 2001, which ended last June 30.
The move falls under a plan KPMG announced in early May to acquire up to 23 independent Andersen consulting units worldwide. KPMG expects to close the latest transaction in July and said it is continuing discussions with other Andersen member firms.
The company did not say which Andersen locations were being acquired in this deal.
KPMG previously signed definitive agreements to acquire Andersen consulting practices in Japan, Norway, Finland, Switzerland and Sweden.
KPMG, which had about 9,000 workers before it began scooping up Andersen units, acquired significant parts of the business consulting units of member firms in Australia, Hong Kong and China.
Andersen has been hemorrhaging clients and workers since its botched audits of Enron Corp. came to light. Earlier this month, a Houston jury found that Andersen criminally obstructed an investigation into its audits of the once high-flying Houston energy trader.