Consulting M&A Weekly Round-up (4th to 10th February, 2024)

Welcome back to another edition of our weekly compilation of global consulting M&A news. In this edition, we bring you a diverse array of significant deals from the industry.

Taking the spotlight in this week's headlines are major consulting firms, including Deloitte, KPMG, and Oliver Wyman, all making strategic acquisitions. However, they are not the sole players in the field making noteworthy moves. Without further ado, let's delve right into the latest developments in the week gone by.

#1. Deloitte US buys OpTeamizer and Giant Machines

Deloitte US has completed the acquisition of OpTeamizer, an Israeli AI consultancy, and Giant Machines, a digital product studio based in New York.

Established in 2015, OpTeamizer specializes in creating and implementing AI solutions powered by Nvidia graphics processing units (GPUs). The firm, located in Yokneam Illit, boasts around 20 developers, as indicated on its website.

Founded in the same year, Giant Machines aids Fortune 500 companies in conceptualizing and engineering digital products. The company's expertise spans market and user research, product strategy, prototyping, engineering and design, as well as product management.

Deborshi Dutt, principal and AI leader at Deloitte Consulting, emphasized the strategic significance of the OpTeamizer acquisition, stating, "As Generative AI transforms the way we work, Deloitte has continued to invest intentionally and strategically to help our clients innovate at speed. OpTeamizer broadens that value further by bringing deep high-performance computing experience to Deloitte's full stack AI capabilities and alliance ecosystem."

On the other hand, Tim Juravich, principal at Deloitte Consulting, highlighted, "The Giant Machines product incubation and solutions services will scale our Deloitte Engineering and Deloitte Digital capabilities to help our clients accelerate product delivery and shape the next generation of innovation."

#2. Oliver Wyman acquires payments consultancy firm Innopay

Oliver Wyman has completed the acquisition of Innopay, a consultancy firm based in the Netherlands that specializes in digital transactions.

Established in 2002, Innopay focuses on providing strategy, scheme development, and execution within the realms of digital payments, open finance, digital identity, and data sharing. With 60 consultants spread across offices in Amsterdam and Frankfurt, the firm has positioned itself as a key player in the evolving landscape of European payments.

Stephen Whitehouse, Partner at Oliver Wyman and head of its Payments practice in Europe, highlighted the transformative changes in the European payments sector driven by technological advancements, shifting consumer preferences, and regulatory developments.

The merger of Oliver Wyman and Innopay is expected to create a distinctive offering, leveraging deep industry knowledge and fostering collaboration to expedite the impact of their combined expertise in unlocking value within this dynamic landscape.

#3. KPMG buys Montreal law firm Sweibel Novek Rabbat

KPMG Canada has successfully completed the acquisition of Sweibel Novek Rabbat LLP (SNR), a boutique law firm based in Montreal.

Established in 1994, SNR specializes in providing customized services in tax planning, tax litigation, estate planning, and various commercial and corporate legal matters.

The team from SNR will now become part of KPMG Law LLP, the legal affiliate of the Big Four accountancy firm. This strategic move is expected to enhance KPMG's capacity to assist family businesses and entrepreneurs in navigating succession challenges, especially with the ongoing exit of baby boomers from the workforce.

Benoit Lacoste Bienvenue, the Regional Managing Partner for Quebec at KPMG Canada, emphasized the significance of this acquisition in advancing their growth strategy. He stated, "This acquisition represents an important milestone for our growth strategy aimed at providing a unique approach to our clients’ business needs leveraging our multidisciplinary capabilities to offer the best legal blend."

Lacoste Bienvenue highlighted the urgency of strengthening their offerings for business families, citing the results of the Focus Québec survey, which revealed that 82% of companies in Quebec are accelerating their succession plans. He underscored the increasing need to support entrepreneurs in addressing all facets of implementing an optimal transition plan.

#4. Wavestone acquires Pittsburgh-based Aspirant Consulting

Wavestone, a management and technology consulting firm based in Paris, has successfully acquired Aspirant Consulting, a firm also specializing in management and technology consulting, headquartered in Pittsburgh.

Established in 2003, Aspirant offers a range of consulting services covering strategy and transformation, mergers and acquisitions, project leadership, organizational effectiveness, marketing, and application development.

This strategic acquisition is set to bolster Wavestone's presence in the United States, bringing on board approximately 100 professionals. Highlighting the significance of the US market in its global expansion strategy, Wavestone expressed confidence in the cultural alignment observed during discussions and praised Aspirant Consulting's impressive track record in establishing enduring partnerships with major enterprises.

Pascal Imbert, CEO of Wavestone, remarked, "Our discussions in the last months have confirmed a strong cultural fit at all levels, and we were impressed by Aspirant Consulting’s track record and their ability to develop a long-lasting footprint within very large enterprises. All combined with the quality of the leadership team will enable us to build sound foundations in the US, the world’s leading consulting market."

#5. Chartis acquires HealthScape Advisors

Chartis, a healthcare consultancy based in Chicago, has successfully acquired HealthScape Advisors, a fellow Chicago-based consulting firm specializing in healthcare payer services.

Established in 2009, HealthScape is renowned for its work with payers across diverse segments, including commercial, Medicare, Medicaid, ACA, and federal programs. The firm excels in areas such as strategy, growth & innovation, healthcare value creation, operational performance improvement, transaction support, and technology-enabled solutions.

This acquisition marks a strategic move for Chartis, enhancing its capabilities in healthcare payer services. It follows Chartis' earlier acquisition in 2022 of Crankfrog, a national payer advisory firm.

As part of the integration, HealthScape will undergo a rebranding process and be known as "HealthScape, A Chartis Company." Kyle Stern, the managing director, will continue to lead the HealthScape team, ensuring a seamless transition and the continued delivery of high-quality consulting services.

#6. Geoghegans joins MHA in merger

MHA has officially confirmed its merger with Geoghegans, an Edinburgh-based accountancy firm. Geoghegans offers a comprehensive range of accountancy services, catering to clients not only in the capital but also throughout Scotland.

Rakesh Shaunak, the chair of MHA, expressed the significance of this expansion, stating, “This strategic move marks a considerable milestone for MHA. Following the successful merger with Meston Reid & Co, we expressed our intent to further extend our presence in Scotland, and we have now realized that goal.”

He stated, “The merger with Geoghegans is particularly advantageous as it allows us to enter the thriving Edinburgh market and expand our reach across Scotland. Geoghegans' values and commitment to customer service align seamlessly with ours, making this merger a perfect fit.”

He added, “We are committed to retaining all staff in the Edinburgh office, fostering opportunities for professional development and recruitment. Moreover, we remain open to the possibility of additional growth initiatives in Scotland.”

#7. AArete buys technology consulting firm Legerity

AArete, a management and technology consulting firm headquartered in Chicago, has successfully acquired Legerity, a technology consulting firm based in Norfolk, VA.

Established in 2018, Legerity specializes in providing IT consulting and implementation services for Pega, a widely-used software platform for customer relationship management (CRM) and business process management.

This strategic acquisition is set to enhance AArete's core administration systems capabilities in the healthcare payer sector, in addition to strengthening its broader digital transformation and automation services.

Loren Trimble, CEO of AArete, expressed enthusiasm about the acquisition, stating, "Welcoming Legerity to the AArete team aligns with our goal to be an end-to-end solution provider that delivers world-class business and technical solutions to clients. The acquisition not only expands AArete's client base and capabilities but also deepens relationships with clients that AArete and Legerity already share."

#8. FPT Software buys minority stake in First North Consulting

FPT Software, an IT consulting firm headquartered in Vietnam, has recently acquired a minority stake in First North Consulting, a Toronto-based company specializing in consulting services for the financial services sector.

Established in 2008, First North Consulting offers business and technology consulting to a range of financial institutions, including portfolio managers, pension funds, broker/dealers, global custodians,

marketplace/clearinghouses, and industry regulators. The company's services span strategy, business transformation and requirements, new product development, and process optimization.

The collaboration between FPT and First North aims to provide comprehensive services to clients in the banking and capital markets. This partnership will offer expertise in business consulting, data and analytics, custom applications, and artificial intelligence.

Closing Thoughts

That’s it for this week on our weekly consulting news round-up. We will definitely be back again next week for more news. In the meantime, if we missed out on any deals, please write to us and make it known. We shall see you all again next week. Bye for now.