Consulting M&A Weekly Round-up (28th to 3rd February, 2024)

Welcome back to our weekly round-up of global consulting M&A news. In this edition, we present a diverse range of noteworthy deals that have recently unfolded in the industry.

At the forefront of this week's headlines is Deloitte Canada, marking its success with the acquisition of Flow, a Toronto-based firm specializing in Scientific Research & Experimental Development (SR&ED) tax credits. Additionally, Ankura has made a strategic move by acquiring organizational consultancy Lumeri, while Coast Digital and Den Creative have undergone a rebranding initiative to unite as Elixirr Digital, among other significant developments.

As we navigate through the dynamic landscape of mergers and acquisitions in the consulting sector, we invite you to join us in exploring the intricacies and highlights of these recent developments. Without further delay, let's plunge into the captivating world of consulting M&A news from the past week.

#1. Deloitte Canada buys tax credit consultancy Flow

Deloitte Canada has completed the acquisition of Flow, a Toronto-based firm specializing in Scientific Research & Experimental Development (SR&ED) tax credits.

Established in 2006, Flow specializes in assisting early-stage technology, media, and telecom (TMT) firms in securing SR&ED tax credits, grants, venture capital funding, and loans. Over the years, the consultancy has collaborated with numerous founders, aiding companies in raising over $350 million in financing since its inception.

This acquisition by Deloitte is a strategic move to bolster its presence in the TMT startup ecosystem. It builds upon the establishment of a $150-million venture capital fund for TMT startups in 2022.

Anthony Viel, CEO of Deloitte Canada, expressed optimism about the collaboration, stating, "Joining forces with Flow adds strong leadership, technical capabilities, and deep industry relationships to our Gi3 practice, which is at the forefront of building sustainable and vibrant communities where investments and innovation flourish.”

He further added, “With our brand, resources, and complementary offerings, combined with Flow’s market eminence, relationships, and technical capabilities, we are poised to significantly contribute to the growth of our clients and technology ecosystems, fostering inspiration and success."

#2. Ankura acquires organizational consultancy Lumeri

Ankura, a management consultancy headquartered in New York, has successfully acquired Lumeri, a boutique organizational consulting firm based in Denver.

Established in 2004, Lumeri specializes in providing strategic leadership and transformation services specifically tailored for Fortune 500 companies. The firm is renowned for its "Execution Certainty" methodology, designed to navigate large and complex organizational transformations. This approach aids clients in identifying strategic issues hindering success and offers clarity on the necessary steps to address these challenges.

Angela Cinefro, President of Ankura and co-head of the transformation, talent, & transactions practice, expressed enthusiasm about the acquisition, stating, "Lumeri's impressive track record in driving organizational transformation through Execution Certainty™ on major projects for Fortune 500 companies is well-deserved. We eagerly anticipate joining forces to assist clients in maximizing their impact by fostering alignment across the Executive Team, Project Team, and the communities in which they operate."

#3. Coast Digital and Den Creative rebrand to form Elixirr Digital

Elixirr has unveiled its new digital label by rebranding Coast Digital and Den Creative. The newly established Elixirr Digital aims to collaborate with clients globally to enhance digital innovation initiatives.

David Wharram, CEO of Elixirr Digital, assured that the transition would not impact the quality, delivery, or management of ongoing projects. He emphasized that the consolidation of resources would empower the team to provide more dynamic and comprehensive support to clients, maintaining the commitment to delivering exceptional services.

The expansion builds upon the 2017 acquisition of Den Creative, a well-known design agency founded in 2010, which had a team of 10 experienced creative and technical specialists. The combined expertise of the two firms will offer a comprehensive range of digital services, encompassing strategic marketing, cutting-edge design, and technology.

These services complement the existing offerings within the Elixirr Group, ranging from AI to business strategy.

In a released statement, Elixirr highlighted that the rebrand signifies a natural evolution aligning with its expanding global presence. This move strengthens the array of digital solutions provided to clients. The statement also announced that Elixirr Digital will soon introduce its new branding across all communication channels in the coming weeks. The fresh identity not only reflects the digital arm's global aspirations but also signifies a future dedicated to crafting and delivering exceptional digital solutions.

#4. Collegium acquires fundraising consultancy Alexander Haas

Collegium, a holding company based in New York specializing in nonprofit sector consulting firms, has successfully acquired Alexander Haas Inc., a fundraising consulting firm located in Atlanta.

Established in 1987, Alexander Haas has been providing guidance on fundraising and campaigns for nearly 1,000 organizations nationwide, including nonprofits, educational institutions, museums, cultural organizations, and other philanthropic entities.

Craig Leach, the founder and chair at Collegium, expressed excitement about the acquisition, stating, “We are thrilled to welcome Alexander Haas to Collegium. This acquisition signifies a synergistic alignment of values, expertise, and a shared commitment to making a positive impact on the nonprofit sector.”

Alexander Haas becomes Collegium’s 15th acquisition, joining other esteemed fundraising specialists like Graham Pelton, Ruotolo Associates, and Averill Fundraising Solutions. In line with Collegium's approach, Alexander Haas will maintain its distinctive branding and leadership, operating as an independent entity.

#5. Salesforce specialist Cloudwerx adds data consultancy Lightfold

Cloudwerx, a Salesforce consultancy based in Sydney, has strengthened its data analytics and AI capabilities by acquiring the Brisbane-based specialist, Lightfold.

The two consultancies have a longstanding strategic relationship, both having roots tracing back to the Cloud Sherpas acquisition by Accenture. This acquisition comes after Cloudwerx secured a $7 million investment from private equity firm CVC Group in 2022.

While the financial details of the latest deal are undisclosed, Cloudwerx Chairman Roger Burgess, who co-founded the firm in 2018 with COO Miha Remec and CTO Chris Baldock, expressed that the acquisition aligns with their strategic investment in data analytics and AI technologies.

Burgess anticipates that the collaboration between the two companies will enable Cloudwerx to unlock operational efficiencies and provide unprecedented insights to their customers through a highly specialized team.

#6. NDH acquires Houston-based Jain & Jain

NDH Advisors LLC, a privately funded accounting and consulting firm supported by private equity, has successfully acquired Jain & Jain P.C., a tax and accounting firm based in Houston.

Established in 1986 by Mike and Rajni Jain, this specialized firm focuses on delivering tax and outsourced accounting services to high-net-worth individuals (HNWIs), closely-held businesses, and family offices. Operating with a team of 12 employees, as indicated on its website, the firm predominantly serves clients across Texas, Kansas, Utah, and Florida.

The Jain & Jain deal is the second bolt-on since NDH was acquired by Unity Partners in March 2023. NDH in November added Stratus Group, a Kansas-based accountancy.

As part of Unity Partners' investment, Mike and Rajni Jain, along with their entire team, will become part of NDH's employee ownership program. Unity Partners, a Houston-based private equity firm, places significant emphasis on integrating employee ownership plans into its transactions.

Jeremy Dubow, CEO and co-founder of NDH, expressed enthusiasm about the acquisition, stating, "This transaction is a strategic fit with NDH's core service offerings, enabling us to incorporate skilled professionals into our expanding team. Mike and Rajni, as dedicated and seasoned business owners, share values that resonate with ours. Their esteemed leadership and expertise as top-tier advisors will play a pivotal role in supporting NDH's business growth in Texas and the neighboring states."

#7. New Mountain Capital merges portfolio firms Bounteous and Accolite

New York-based investment firm New Mountain Capital has successfully merged its portfolio companies, Bounteous and Accolite, creating a robust digital transformation consultancy boasting a workforce of 5,000 individuals.

Established in 2003 and headquartered in Chicago, Bounteous specializes in strategy, experience design, marketing, and technology, with a team of 2,000 professionals spanning offices in North America and India. On the other hand, Accolite, founded in 2007 and based in Dallas, focuses on digital engineering, cloud, and data and AI services, boasting a workforce of 3,000 spread across North America, Europe, and India.

The decision to merge was fueled by the recognition of substantial cross-selling opportunities, as stated by Prasad Chintamaneni, Managing Director of New Mountain, in an interview with Business Insider. Bounteous primarily engages in design and marketing projects, while Accolite specializes in cloud infrastructure and data analytics.

Chintamaneni expressed confidence in the growth potential resulting from the merger, highlighting the impressive customer rosters, digital consulting and engineering capabilities, and commitment to innovation brought forth by both companies.

Temporarily branded as Bounteous x Accolite, the unified firm is poised to offer a comprehensive range of digital services across AI and data, cloud, customer experience and martech, digital commerce, and product engineering. Geographically, it will have around 1,200 employees in North America, 3,400 in Asia-Pacific, and 400 in Europe.

The co-founders and CEOs of the merging entities, Keith Schwartz of Bounteous and Leela Kaza of Accolite, will jointly serve as co-CEOs of the combined firm, with its headquarters situated in Chicago. Schwartz expressed enthusiasm for the merger, emphasizing the alignment of Bounteous's vision with Accolite's track record of creating lasting value for clients and shared commitment to customer success.

Closing Thoughts

And that’s it for this week’s consulting M&A news round-up. If there were any deals we might have missed, kindly reach out and inform us. Moreover, we will be back again next week for another edition of consulting M&A news. Till next time, it’s bye for now!