PwC shedding U.S. public sector arm to Veritas
Global consulting giant PwC has struck a deal to sell its U.S. public sector business to Veritas Capital.
Global consulting giant PricewaterhouseCoopers has agreed to sell its U.S. public sector business to private equity firm Veritas Capital in a move that continues a busy period for acquisitions in the government market.
Terms of the transaction were not disclosed and the U.S. public sector business will retain its current leadership and talent base, PwC and Veritas said Wednesday. Veritas will rename the business upon closure and PwC expects to continue to work with the unit through teaming arrangements where it sees appropriate.
PwC’s McLean, Virginia-based U.S. public sector business has nearly 1,500 partners and staff that work with Cabinet departments such as Defense, Health and Human Services, Homeland Security, State and Veterans Affairs. Led by Scott McIntyre, the business also has state and local government customers. The company was ranked No. 72 on the 2017 Washington Technology Top 100 with $279.2 million in prime contracts.
Veritas Capital has itself been busy in recent months with various investment and exit moves regarding its government market portfolio. The New York City-based firm is in the midst of merging Vencore and KeyPoint Government Solutions with the DXC U.S. public sector business to form a new company currently anticipated for launch in May.
Veritas’ government portfolio also includes Peraton, the former Harris Corp. IT business acquired in the spring of last year and re-launched under its current name later in the summer. Alion Science and Technology was acquired by Veritas in 2015.
For PwC, the sale of its public sector arm is intended to give the firm greater capacity to invest in its commercial businesses. Reuters first reported in December that PwC was seeking to fetch around $500 million in a sale of its public sector business and that Chicago-based investment firm Madison Dearborn Partners was another potential bidder alongside Veritas.
Morgan Stanley & Co. LLC was financial adviser to PwC and Davis Polk & Wardwell LLP was legal counsel.
Schulte Roth & Zabel LLP and Covington & Burling LLP were legal counsel to Veritas.