Big Blue Monday

IBM completes PwC deal; adds 30,000 consultants, expertise in supply chain, CRM

Tempe, AZ  October 2, 2002  The news this Wednesday is that Big Blue has bought Monday.

IBM today completed its $3.5 billion acquisition of PwC Consulting PricewaterhouseCoopers' management consulting and technology services unit, which just this past June announced that it was changing its name to Monday.

The new business unit, IBM Business Consulting Services, includes more than 30,000 IBMers and 30,000 transferring PwC consultants and staff. The new unit will reside within Big Blue's Global Services division.

IBM and PwC signed a definitive agreement regarding the acquisition at the end of July, but the deal required approval from PricewaterhouseCoopers member firms and partners, as well as from U.S. and European regulators.

IBM said today it has paid PricewaterhouseCoopers approximately $3.5 billion in cash and stock for PwC.

Analysts have predicted that large-scale layoffs are unlikely in the wake of the acquisition as PwC's consultants bring with them expertise in areas where IBM has been weak, such as customer relationship management, supply chain and financial transaction management.

"We've combined two organizations with complementary skills and cultures," said Ginni Rometty, the new general manager of the Business Consulting Services unit, in a statement.

IBM said it would use Ernst & Young to audit its Business Consulting Services unit.