Court OKs Deloitte purchase of BearingPoint federal practice
- By David Hubler
- Apr 20, 2009
Deloitte LLP has received approval from the United States Bankruptcy Court for the Southern District of New York to purchase substantially all the assets of BearingPoint’s North American Public Services practice.
The deal will cost Deloitte about $350 million in cash, subject to adjustment, and the assumption of certain BearingPoint liabilities, according to the April 17 announcement.
At closing, Deloitte will acquire most of BearingPoint’s assets associated with projects in the federal government sector, as well as certain projects in areas such as health care, emerging markets, state and local governments, and education, Deloitte officials said.
Also, as many as 4,250 Bearing Point employees will become Deloitte principals and employees, they said.
“Deloitte’s Federal Practice has grown rapidly over the past five years as we have increased our assistance to public-sector clients who face ever-increasing challenges. The addition of BearingPoint’s highly talented team will position us for even stronger performance and further enhance our services for clients,” said Barry Salzberg, Deloitte chief executive officer, in the statement.
The transaction is expected to close in May, subject to customary closing conditions.
BearingPoint, of McLean, Va., ranks No. 28 on Washington Technology’s 2008 Top 100 list of the largest federal government prime contractors. Deloitte’s parent company, Deloitte and Touche USA LLP, of New York City, ranks No. 55 on the list.
David Hubler is the former print managing editor for GCN and senior editor for Washington Technology. He is freelance writer living in Annandale, Va.