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Information technology services

Computer Sciences Corporation Acquires Majority Interest in KPMG Peat Marwick SA

Strategic Insights

— 1 min read

Computer Sciences Corporation (CSC) has made a significant move in the management consulting and information technology services market by acquiring a 51% interest in KPMG Peat Marwick SA, a Paris-based firm with annual revenue of approximately $70 million. The acquisition, which values the combined organization at over $200 million, aims to provide end-to-end capabilities to clients in France, leveraging CSC's global business management and technology expertise.

Key Takeaways:

  • CSC acquired a 51% interest in KPMG Peat Marwick SA, a Paris-based management consulting and information technology services firm, for an undisclosed amount.
  • The combined organization will employ 1,100 professionals and have annual revenues approaching $200 million.
  • The acquisition aims to provide clients in France with a powerful blend of services, including the design and execution of major business transformation programs.
  • The combined venture offers access to CSC's global business management and technology expertise, as well as the ability to exploit CSC's investments in areas crucial to competing in a global economy, such as rapid application development, ERP implementation, and new technology deployment.
  • CSC will leverage KPMG Peat Marwick SA's local expertise and rapport with clients in France, while providing KPMG Peat Marwick SA's consultants with global career development opportunities.
  • A joint program is already in place to ensure a smooth transition.
  • Patrick Laredo, president of KPMG Peat Marwick SA, stated that the combination will allow consultants to leverage CSC's global capabilities.
  • The acquisition reinforces CSC's commitment to providing end-to-end capabilities to clients today, from strategic consulting to implementing mission-critical information technology systems.
  • The combined organization will become one of the largest management and I/T consulting companies in France.
  • CSC chairman, president and CEO, Van B. Honeycutt, signaled that France is an important area of growth and opportunity for CSC.

Statistics:

  • CSC's acquisition of KPMG Peat Marwick SA values the combined organization at over $200 million.
  • KPMG Peat Marwick SA has annual revenue of approximately $70 million.
  • The combined organization will employ 1,100 professionals.
  • CSC had $6.9 billion in revenues for the 12 months ended July 3, 1998.
  • CSC has 45,000 employees in 700 offices worldwide.

Sources:

  • PRNewswire, "Computer Sciences Corporation Acquires Majority Interest in KPMG Peat Marwick SA"
  • CSC press release, dated October 19 (exact date), 1998, no time.

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