FTI Consulting bought Financial Dynamics, a top financial public relations company, for $260 million in cash and shares. According to industry observers, the deal reveals the increasing value that corporate clients place on issues such as reputation management. The two firms also claimed the transaction marked the first time a financial PR firm has been acquired by a consulting company, rather than a media or marketing group.
FTI intends to operate Financial Dynamics as a separate business run by the existing management team under Charles Watson and Declan Kelly, its chief executive in the US. Financial Dynamics, which has 450 staff, is forecast to make about $34 million before tax in 2006. Jack Dunn, FTI's chief executive, said he expected it to continue to show organic growth rates of 20 per cent to 30 per cent. The transaction is expected to close in the first week of October and is intended to help 2007 earnings.
FTI intends to operate Financial Dynamics as a separate business run by the existing management team under Charles Watson and Declan Kelly, its chief executive in the US. Financial Dynamics, which has 450 staff, is forecast to make about $34 million before tax in 2006. Jack Dunn, FTI's chief executive, said he expected it to continue to show organic growth rates of 20 per cent to 30 per cent. The transaction is expected to close in the first week of October and is intended to help 2007 earnings.
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