KPMG To Get A $1 Billion Investment From Cisco Systems
In a deal to be announced today, Cisco Systems Inc., the dominant player in Internet networking equipment, will make a direct investment of $1 Billion in accounting giant KPMG in exchange for 20% of KPMG's US unit.
KPMG, in an effort to maximize the use of the Internet to deliver services to their clients, will hire over 4000 engineers and other complementary staff over the next 18 months. The goal is to develop and deliver leading edge Internet-based data, voice and video services to its clients.
KPMG will incorporate its consulting business as KMPG Consulting, and Cisco Systems will be represented on the Board of Directors.
There are several hoops the two organizations will need to jump through before the deal is finalized next month, including SEC approval and other accounting regulatory bodies which prohibit non-CPAs from owning accounting firms.
If this deal does go through however, it will change forever the concept of alliances throughout the accounting profession.