BearingPoint Selling Most Of Its Business Units

BearingPoint will sell its public services division, the largest part of its business, to Deloitte for $350 million. The company did not provide further details.

The purchase agreement requires BearingPoint to consider all "higher and better" offers from other potential buyers and is subject to bankruptcy court approval, according to a statement.

"We have concluded that a sale of the company's business units maximizes value and provides the greatest stability for all interested parties," said Ed Harbach, BearingPoint's CEO, in that statement.

BearingPoint also said it has signed a nonbinding letter of intent to sell a substantial portion of its North American commercial services business, including its financial services segment, to PricewaterhhouseCoopers for $25 million. A PwC unit in Japan is also in advanced negotiations to buy the company's consulting practice in Japan.

"The sale is in the best interests of BearingPoint, its partners and its clients," wrote Technology Business Research in commentary about the deal. "The company had endured accounting and financial troubles going back to 2004 and despite the resolution of its accounting mess in late 2007, it has been unable to stabilize the business, successfully attract and retain talent, and expand its pipeline and book of business to sustain ongoing operations."

The company also is in late-stage talks to sell its European and Latin American practices to local management teams, and is in negotiations to sell its Asian operations as well.

BearingPoint began as an information-technology offshoot of accounting behemoth KPMG LLP. The unit was spun off in 2000 as KPMG Consulting and went public the following year. It changed its name to BearingPoint in 2002.