Tier Technologies buys KPMG Consulting unit
- By Patience Wait
- Mar 08, 2002
Tier Technologies Inc. of Walnut Creek, Calif., announced March 7 it has reached an agreement with KPMG Consulting Inc., McLean, Va., to acquire its government solutions center.
The transaction, effective March 16, had an initial purchase price of about $8 million in cash. A Tier statement said that if the operation achieves "certain net revenue goals over the next three years, up to approximately $8.5 million of additional contingent consideration may be paid in cash."
The center employs more than 70 professionals. It licenses its applications and provides implementation, integration, maintenance and support services to more than 50 clients throughout the United States and Canada.
The center focuses on providing financial and procurement system solutions to state, county and city governments and agencies. A KPMG Consulting spokesman said the center's primarily maintains software, which the company does not see as part of its core business.
Charles Johnson, KPMG Consulting managing director for the center, is transferring to Tier and will continue to lead its operations after the transaction is completed.
"This represents an opportunity to join a company that is interested in bringing advanced solutions and operational improvements to its government clients," he said.
"This acquisition allows us to broaden our delivery offerings and leverage our mutual expertise across business lines," said James Bildner, Tier's chairman and chief executive officer. The center's client base "will compliment Tier's growing state and local government client roster. In addition, the acquisition of the suite of proprietary solutions underscores our continuing investment in practical technology solutions for our clients."