A.T. Kearney in management buyout from EDS

Stan Beer
Friday, 04 November 2005 10:00

IT Industry - Strategy

The Australian office of EDS-owned management consulting firm A.T Kearney confirmed that the firm would remain in Australia, after the announcement of an agreement for management to purchase A.T. Kearney from global IT outsourcer EDS.

Under the agreement, the officers would become partners in a newly independent A.T. Kearney. The transaction is expected to close by the end of this year, pending customary closing conditions. Financial details of the agreement were not disclosed.

A.T. Kearney's new managing director for Australia and New Zealand, Mr David Hovenden, welcomed the MBO and said the partner ownership model would work best in today's management consulting environment.

'For clients, this means a more focused A.T. Kearney, with partners and staff whose interests are aligned with client success. For partners and staff, it means greater control of our own destiny, with increased incentives for performance and growth,' he said.

Mr Hovenden confirmed A.T. Kearney's commitment to remaining in the Australian market, given the large contribution - both financially and in terms of intellectual capital - the Australian practice makes to A.T. Kearney globally.

As part of the proposed transaction, A.T. Kearney and EDS would enter into a multi-year services and marketing agreement. Under the agreement, A.T. Kearney would continue to provide management consulting services to EDS and to EDS clients. The two companies also would pursue select joint go-to-market opportunities.