Acquisition Reflects KPMG Growth Strategy to Identify Service Opportunities for High Demand Market Sectors
NEW YORK and LONDON, Feb. 22, 2011 - KPMG LLP (US), KPMG Holdings Limited (UK) and KPMG International today announced the closing of an agreement to acquire the business of advisory firm EquaTerra. The acquisition creates one of the broadest global sourcing and shared services advisory offerings across the Americas, Europe and Asia Pacific.
Combining KPMG's practice and EquaTerra, two of the world's top-ranked global sourcing organizations, the transaction is consistent with the KPMG network's growth strategy, focusing on organic and inorganic opportunities in select high-demand market sectors. Terms were not disclosed.
As organizations transform their operations to compete in today's complex business environment, EquaTerra's highly experienced professionals, combined with the KPMG network's deep market presence and objective shared services and outsourcing advisory team, will provide clients with a full life-cycle of capabilities - from strategy through to optimization - for companies seeking to reduce costs and improve effectiveness and efficiency.
"EquaTerra is an ideal fit for KPMG and we look forward to welcoming the EquaTerra team to the KPMG network family," said Timothy P. Flynn, Chairman, KPMG International. "Through this acquisition, clients of KPMG member firms will benefit from the addition of a market-leading sourcing adviser to help them transform their organizations into more flexible enterprises in a way that meets today's complex market demands."
Mark Toon, former Chief Executive Officer of EquaTerra and current KPMG LLP principal, said that the deal adds value for clients of both organizations. "Joining a network with KPMG's capabilities and global scope provides great opportunities for our employees and clients," Toon said. "KPMG's extensive sourcing experience, its Big Four market presence and its reputation for relentless execution is an ideal complement for EquaTerra's business transformation capabilities and highly respected reputation in the shared services and sourcing advisory sector."
John Veihmeyer, KPMG LLP (U.S.) Chairman and CEO, noted that the acquisition helps address changing client needs as the outsourcing services market continues to evolve. "EquaTerra's tools and capabilities speak directly to clients' desire to move beyond one-off outsourcing activities and develop comprehensive sourcing strategies that deliver real value across their organizations," Veihmeyer said. "This is part of our strategy of building large-scale transformation capabilities to help organizations as they address the realities of a new global marketplace."
The name "EquaTerra" means "level ground," which aligns well with KPMG's philosophy of providing an objective sourcing and shared services advisory approach. This is also consistent with KPMG's focus on bringing clients and service providers together in a collaborative environment to create innovative delivery models and provide sustainable value to the business.
John Griffith-Jones, Co-Chairman, KPMG Europe LLP, said the acquisition will allow KPMG member firms to help clients manage large scale, cross-border transformation efforts. "KPMG member firms provide a full suite of services for enterprise executives seeking to optimize their organization. The acquisition of EquaTerra complements these existing capabilities and deepens KPMG member firms' shared services and sourcing expertise, Intellectual Property and services."
"The company is also led by a management group with extensive sourcing industry experience supported by a deep bench of global leadership talent. These are invaluable attributes crucial to succeeding in this competitive market segment," added Griffith-Jones.
EquaTerra is ranked No. 2 on the International Association of Outsourcing Professionals' recent 2010 list of the World's Best Outsourcing Advisers. It serves clients throughout the Americas, Europe, Middle East, Africa and Asia Pacific, providing deep functional knowledge in Finance and Accounting, HR, IT, Procurement and other critical business processes.
This broad geographic and industry-specific footprint will enhance the ability of KPMG professionals to help companies transform their service delivery models and address change management issues, centralize and optimize capabilities, outsource functions, and create a sustainable governance and performance management model.
EquaTerra sourcing advisers help clients achieve sustainable value in their IT and business processes. Their advisors average more than 20 years of industry experience and have supported more than 2,000 transformation and outsourcing projects across more than 60 countries.
KPMG is a global network of professional firms providing Audit, Tax and Advisory services. We operate in 150 countries and have 138,000 people working in member firms around the world. The independent member firms of the KPMG network are affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. Each KPMG firm is a legally distinct and separate entity and describes itself as such.
SOURCE KPMG LLP
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