A little more than a month after filing Chapter 11 reorganization, BearingPoint has agreed to sell off most of its business units. The McLean, Va.-based technology consulting firm said Deloitte agreed to buy its North American Public Services business, BearingPoint's biggest unit, for $350 million in cash.
BearingPoint also said PricewaterhouseCoopers has agreed to pay $25 million for its North American Commercial Services practice. PwC's Japan affiliate also said it has agreed to buy BearingPoint's Japan consultancy. In addition, the firm said it is in negotiations to sell its European, Latin American and non-Japanese Asia Pacific units.
All of the deals are subject to bankruptcy court approval.
The moves are an apparent about face from BearingPoint's previously announced restructuring plans. "Since we entered the restructuring process, we've been committed to evaluating all strategic options with the goal of charting the best possible course for the people, clients and creditors of BearingPoint," said Ed Harbach, Bearing Point CEO. "We have concluded that a sale of the company's business units maximizes value and provides the greatest stability for all interested parties."
Earlier this month, Robin Lineberger, executive vice president, global public services for BearingPoint, told Consulting magazine that the firm's Chapter 11 filing would make it "structurally easier" to sell parts of the business because the firm was no longer sitting on a mountain of debt, but added that he was optimistic about BearingPoint's restructuring plan and financial future.
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