IBM Buys Monday On Tuesday - InformationWeek

InformationWeek is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them.Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

IoT
IoT
News

IBM Buys Monday On Tuesday

IBM says it will pay $3.5 billon in cash and stock for PwC Consulting. Two years ago, Hewlett-Packard tried to buy the consulting firm for around $18 billion.

IBM bulked up its already massive services organization Tuesday when it revealed plans to acquire PwC Consulting, the business-management and technology consulting and services unit of PricewaterhouseCoopers. IBM says it will pay $3.5 billon in cash and stock for PwC Consulting, which expects to post revenue of $4.9 billion in 2002. Two years ago, Hewlett-Packard tried to buy the consulting firm for around $18 billion.

PwC Consulting and its 30,000 employees will be merged into IBM's $35 billion, 150,000-person Global Services unit. Ginni Rometty, general manager of Global Services for the Americas, will head up a new division made up of PwC employees. She'll report to Doug Elix, an IBM senior VP and group executive who heads up the entire IBM Global Services unit. IBM didn't say whether any layoffs would result from the deal.

As a result of the agreement, PwC Consulting has withdrawn its plan for an initial public offering--as well as its plan to rebrand itself with the rather strange name of Monday. The two companies hope to wrap up the deal sometime around the end of September.

IBM executives say they'd looked into buying the consulting firm two years ago but thought it was too expensive at the time. The acquisition will cause earnings per share to drop by almost 30 cents in the fourth quarter. "By 2004, it will contribute to double-digit revenue growth, similar to that of the rest of IBM Global Services," Elix says.

IBM stock closed Tuesday at $71.61, up 61 cents on the New York Stock Exchange.

We welcome your comments on this topic on our social media channels, or [contact us directly] with questions about the site.
Comment  | 
Print  | 
More Insights
State of the Cloud
State of the Cloud
Cloud has drastically changed how IT organizations consume and deploy services in the digital age. This research report will delve into public, private and hybrid cloud adoption trends, with a special focus on infrastructure as a service and its role in the enterprise. Find out the challenges organizations are experiencing, and the technologies and strategies they are using to manage and mitigate those challenges today.
Commentary
What Becomes of CFOs During Digital Transformation?
Joao-Pierre S. Ruth, Senior Writer,  2/4/2020
News
Fighting the Coronavirus with Analytics and GIS
Jessica Davis, Senior Editor, Enterprise Apps,  2/3/2020
Slideshows
IT Careers: 10 Job Skills in High Demand This Year
Cynthia Harvey, Freelance Journalist, InformationWeek,  2/3/2020
Register for InformationWeek Newsletters
Video
Current Issue
IT Careers: Tech Drives Constant Change
Advances in information technology and management concepts mean that IT professionals must update their skill sets, even their career goals on an almost yearly basis. In this IT Trend Report, experts share advice on how IT pros can keep up with this every-changing job market. Read it today!
White Papers
Slideshows
Twitter Feed
Sponsored Live Streaming Video
Everything You've Been Told About Mobility Is Wrong
Attend this video symposium with Sean Wisdom, Global Director of Mobility Solutions, and learn about how you can harness powerful new products to mobilize your business potential.
Sponsored Video
Flash Poll