8
27
2010
»PwC to Buy Diamond
PricewaterhouseCoopers recently announced plans to acquire Diamond Management & Technology Consultants for $378 million. The deal has been unanimously approved by both companies' boards and is expected to close by the end of 2010, pending the approval of Diamond's stockholders and antitrust clearance.
Diamond employs more than 500 consultants worldwide and has offices in Chicago, Hartford, New York, Washington D.C., London, and Mumbai.
Adam Gutstein, President and CEO of Diamond, says the all-cash deal is getting rave reviews from his staff. He stresses that the combination makes sense because of the two firms’ “complementary cultures and very similar values.”
PwC’s US Chairman, Robert Moritz, has a similarly glowing assessment. He describes Diamond’s consultants as “talented professionals with a proven track record of consistently delivering world class service.”
However, not all industry observers are sold on the merits of the deal. “I really believe PwC, in its desire to get back in the game, overpaid for an otherwise tired company. It was a deal for a deal's sake. Financially good for Diamond executives and shareholders, but strategically it raises questions,” says Tom Rodenhauser, Vice President of Consulting & Recruiting for Kennedy Information, which publishes Consulting magazine. “Diamond’s people were very happy with the deal, no doubt. PwC pad a premium price. But the deal makes me wonder what PwC was thinking, particularly since they don't appear to be keeping either the Diamond brand or its executives.”
