IBM to Acquire PwC Consulting

NEW YORK, August 6 -- IBM will acquire PricewaterhouseCoopers' global business consulting and technology services unit, PwC Consulting.

The two companies have signed a definitive agreement approved by IBM's board of directors and PricewaterhouseCoopers' leadership board. IBM will pay PricewaterhouseCoopers an estimated purchase price of $3.5 billion in cash and stock. The transaction is subject to regulatory approvals and approval of local PwC firms through votes of their partners, and is expected to be concluded around the end of the third quarter. PwC Consulting will no longer pursue its planned initial public offering.

"The client is the driving force behind today's announcement with PwC," said Samuel J. Palmisano, IBM president and chief executive officer. "Clients are not only looking for innovative ideas to improve their businesses, they are seeking a partner with deep business expertise and the ability to exploit leading, open standards-based technology to turn these ideas into bottom-line business benefits. This acquisition underscores our commitment to this strategy."