KPMG Consulting has announced that it has signed a definitive agreement to hire 140 partners and 1,400 staff of Andersen Consulting's U.S. operations.
When the deal goes through, expected later in July, KPMG Consulting will pay Arthur Andersen LLP $63 million for the acquisition of the practice. KPMG Consulting expects that $65 million in revenues can be generated from the Andersen group in their first 3-month period with KPMG.
In May, 2002, KPMG Consulting signed a letter of intent to acquire 23 Andersen Consulting units worldwide. So far, definitive deals have been reached with a number of independent parts of the Andersen Worldwide network including Australia, China, Hong Kong, Japan, Norway, Finland, Switzerland, Sweden, and now the United States.
Negotiations with other business units of Andersen Worldwide continue.