2 Consulting Firms Merge in $3.5 Billion Deal – DealBook Blog – NYTimes.com


Two management consulting firms, Towers Perrin Forster & Crosby and Watson Wyatt Worldwide, on Sunday announced an agreement to merge into a new publicly listed company called Towers Watson.

The deal, valued at about $3.5 billion, will help the companies extend their global reach, the companies said in a statement, according to Reuters.

Under the terms of the agreement, Watson Wyatt shareholders would receive 50 percent of Towers Watson shares on a fully diluted basis. Towers Perrin shareholders and some of its employees would be entitled to 50 percent of the new company’s shares on that basis, the companies said.

Watson Wyatt’s chief executive, John Haley, will be the new company’s chief, while Towers Perrin’s chief executive, Mark Mactas, will serve as its president, the statement said.

Annual revenue for Towers Watson is seen at more than $3 billion and the company said it expects about $80 million in pretax annual synergies.

“Full realization of synergies” will take three years and cost about $80 million, according to the statement.

Towers Watson will also have significant noncash expenses during the first two years after the transaction is completed, the companies said. The transaction is expected to add to diluted per-share earnings within three years following the consummation of the deal.

via 2 Consulting Firms Merge in $3.5 Billion Deal – DealBook Blog – NYTimes.com.

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About zyakaira

Investment Banker, 40s, Bangalore This Biopic and this web recreates how one point of view, one person can impact a tremendous economic engine that the world thrives and mis-thrives on. This one has the knowledge and the civil sense , the art of conversation and some good writing to mentor others as powerful and help global managers develop and fine tune their approach on US markets, China, India and the world. Read on here, and let me know what you need. It can be a race for TRPs, a race for new markets and a race to do what is right. I have the pulse of the crisis, the recovery and the market direction and can help you build and refine your strategy as i have helped thousands of managers and multiple global corporations. Of course, it’s more fun if you talk to me. I am in favor of leading this moving of the economic crisis and will partner with you in a soft and subtle way, just the way we both ride to the top. But you can write with us, opine and just reply with aplomb and shine on Twitter , 4 square , Facebook and any other social “choupal” of choice via zyaadakairaada Profile & Portfolio - SocialPicks Different flavours at: http://benchilibowl.wordpress.com http://zyaada.mp

Posted on June 29, 2009, in Financial Markets, US and tagged , , , , , , , . Bookmark the permalink. Leave a comment.

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