Answerthink Expands Hackett Group's Supply Chain Offerings with REL Acquisition

Purchase of U.K.-based advisory firm adds working capital, operations competencies to Hackett's benchmarking, best practices capabilities

Purchase of U.K.-based advisory firm adds working capital, operations competencies to Hackett's benchmarking, best practices capabilities

Miami, FL — December 2, 2005 — Business and technology consulting firm Answerthink has acquired the REL Consultancy Group, a financial advisory service focused on helping clients generate cash improvements from working capital and enterprise operations.

Answerthink will integrate REL's offerings into the service portfolio of The Hackett Group, a business process advisory firm and an Answerthink company.

REL is a U.K.-based advisory services organization that over the last 30 years has developed capabilities in working capital management advisory services. REL said it has enabled clients in more than 60 countries to free up over $25 billion through working capital optimization in the last 10 years alone.

The REL capabilities will significantly expand Hackett's best practices intellectual capital in key operational areas including supply chain, according to Answerthink. Additionally, with approximately one-half of its revenues and associates located outside the U.S., REL significantly expands The Hackett Group's service delivery and sales channel capabilities globally by adding a presence in France, Italy, Spain and Singapore and further expanding the company's presence in the U.K. and German market places.

"In addition to its rich history in the credit-to-collection and procure-to-pay areas, REL will significantly expand our intellectual capital and capabilities in the supply chain area," said Answerthink Chairman and CEO Ted A. Fernandez. "Approximately 40 percent of REL's 2005 revenues have been focused on client initiatives in the demand planning and inventory management areas covered through their forecast-to-fulfill offerings."

In conjunction with the acquisition, Hackett will be introducing a new Working Capital Executive Advisory Program that will offer clients access to REL intellectual property and strategic insight through executive-focused best practice research, peer interaction and on-demand advisor access to complement Hackett's existing membership advisory offerings.

Under the terms of the acquisition agreement, the total purchase price is expected to be approximately $32 million. Additionally, Answerthink will incur approximately $3 million in costs to exit REL lease obligations and for related severance. At close, approximately $21.5 million will be paid in cash and $2.7 million of restricted stock units will be issued. The remaining amounts due to sellers will be paid in January and May of 2006.

In conjunction with the acquisition, Answerthink also announced that it plans to exit certain of its lease facilities and incur other related expenses in order to further concentrate its presence in Atlanta, where The Hackett Group is based.

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