KPMG Consulting To Acquire Andersen Consulting Units For $63 Million

KPMG Consulting Arthur Andersen

The deal, expected to close sometime in July, has been in the works since May, the company said.

KPMG expects an additional $65 million in revenue during the quarter ending in September as a result of the acquisition, Rand Blazer, KPMG CEO, said in a released statement.

For the quarter ended March 31, KPMG reported income of $23.7 million, or 15 cents per share, on sales of $582.3 million. KPMG shares were up 4 percent following the announcement, trading at $13.69 per share midday, compared with a Tuesday closing price of $13.11.

KPMG Consulting has also signed agreements to acquire Andersen consulting practices in Japan, Norway, Finland, Switzerland and Sweden. And, as previously announced, KPMG has acquired significant portions of business consulting units of Andersen member firms in Australia, Hong Kong, and China.

Discussions about whether to acquire certain other Andersen member firms are ongoing, according to the company.

Earlier this month, a jury found Andersen guilty of criminal obstruction of justice charges related to the destruction of documents and other electronic information concerning inquiries about the collapse of its client, Enron Energy.