PwC on Brink of $17 Billion Acquisition by HP

Strategic Insights -

Staffers at PricewaterhouseCoopers (PwC) are facing a potential shake-up as news of a possible $17 billion acquisition by Hewlett-Packard (HP) emerges. According to reports in the Financial Times and the Wall Street Journal, a deal is close to being announced, although neither party is commenting on the matter. The acquisition is seen as a logical move, given the recent push by regulatory bodies such as the European Commission and the Securities and Exchange Commission to separate audit and consultancy operations within major accounting firms.

Key Takeaways:

  • A potential $17 billion acquisition deal is in the works between PwC and HP, with a deal expected to be announced soon.
  • The acquisition is in line with regulatory bodies' efforts to separate audit and consultancy operations within major accounting firms.
  • PwC's consultancy operation is seen as the mainstay of the company, while the audit side has become more lucrative due to rising requirements.
  • HP has been diversifying into the telecommunications sector and could benefit from acquiring PwC's consultancy operations to create an in-house value-added reseller.
  • Other parties may be interested in acquiring PwC's consulting arm, according to the Financial Times.

Statistics:

  • $17 billion: potential acquisition deal between PwC and HP (Financial Times, Wall Street Journal)
  • Unknown: number of third parties interested in acquiring PwC's consultancy arm (Financial Times)
  • 2000: year PwC began looking for a buyer/investor in its consultancy operations (Newsbytes)

Sources:

  • Financial Times
  • Wall Street Journal
  • Newsbytes.com
  • European Commission (EC)
  • Securities and Exchange Commission (SEC)