Consulting M&A Weekly Round-up (5th to 11th November, 2023)

Hello everyone, and greetings for another informative weekly recap of the most recent developments in consulting mergers and acquisitions. I'm delighted to share with you the highlights from the dynamic realm of mergers and acquisitions in the consulting sector in the week gone by.

The past week has witnessed several noteworthy deals, with standouts including Deloitte's significant acquisition, Bain Capital's strategic move, and several others. Join me as we delve into the details of these transactions, providing an exclusive glimpse into the latest advancements in the field of consulting M&A.

#1. Deloitte purchases asset management specialist Nihar

Deloitte has enhanced its asset management capabilities through the acquisition of Nihar, a Perth-based engineering services consultancy.

Nihar, now integrated into Deloitte’s consulting business, specializes in providing asset management engineering services for industries such as oil & gas, mining and minerals, manufacturing, and utilities. Their expertise covers capital projects, operations readiness, asset management, and performance optimization.

The addition of Nihar's 70-strong team follows Deloitte's recent strengthening of its consulting business in the strategy and transactions domain with the incorporation of the Perth-based team from Mainsheet Capital.

Deloitte CEO Adam Powick expressed enthusiasm about the acquisition, stating, “It’s great to welcome the team from Nihar as we continue to invest in high-priority domains underpinned by the innovative use of technology. This move will bring together exceptional skills in asset management, operational readiness, and engineering with Deloitte’s proven digital expertise, enabling us to deliver market-leading solutions for asset-intensive clients and sectors.”

#2. Bain Capital to acquire Guidehouse

An affiliate of Bain Capital Private Equity is set to purchase Guidehouse, a management and technology consultancy headquartered in McLean, VA, for a sum of $5.3 billion.

Guidehouse specializes in providing management, technology, and risk consulting, along with digital services and business process outsourcing, catering to clients in both the public and private sectors. The firm serves diverse industries such as defense & security, energy, infrastructure & sustainability, financial services, and health.

This acquisition marks the exit of Veritas Capital from Guidehouse, which it acquired in 2018. The consultancy was established in the same year following Veritas' acquisition and subsequent spin-off of PwC US’ public sector practice.

Veritas subsequently expanded Guidehouse's geographical reach, capabilities, and sectoral scope through significant bolt-on acquisitions, including Navigant Consulting in 2019 (5,000+ people), Dovel Technologies in 2021 (1,800+ people), and Grant Thornton’s public sector practice in 2022 (480+ people).

#3. Resolution Economics acquires several practices of Biddle Consulting

Los Angeles-based economic consulting firm, Resolution Economics, has successfully acquired several practices from Biddle Consulting, an equal employment opportunity (EEO) consulting firm based in Folsom, CA.

With a rich history dating back to its establishment in 1974, Biddle brings over 45 years of expertise in the EEO industry, having collaborated with numerous employers over the years. Moreover, the firm boasts a team of 65 employees, offering a range of services in consulting, training, and software solutions.

The acquired practices from Biddle include affirmative action plan (AAP), diversity, equity, and inclusion (DEI), pay equity, and related training services. Notably, the pre-employment testing services provided by Biddle's TestGenius are excluded from this transaction.

Resolution Economics intends to integrate the acquired Biddle practices into its Berkshire division. The Berkshire division was established last year following the successful acquisition of Berkshire Associates, a human resources consulting and technology firm based in Columbia, MD.

#4. Verdantas buys civil engineering specialist Watcon

Verdantas, an engineering and environmental consulting firm headquartered in Columbus, has successfully acquired Watcon Consulting Engineers, a civil engineering firm also based in Columbus.

Established in the year 2000, Watcon specializes in a range of services, including water, sanitary, and storm systems, as well as street and roadway design, site assessment, land planning, and surveying. The company's website indicates that it operates with a dedicated team of six professionals.

Jesse Kropelnicki, the CEO of Verdantas, expressed his enthusiasm for this acquisition, stating, "This merger is a perfect match for both organizations and underscores Verdantas' commitment to providing outstanding services while expanding its range of capabilities. Notably, this acquisition is especially meaningful, as it evolved organically through enduring local relationships within the Verdantas team, highlighting the trust and synergy that form the foundation of our leadership philosophy and our vision for future growth."

#5. Jabil acquires procurement consultancy ProcureAbility

Jabil, a worldwide manufacturing and supply chain services company, has completed the acquisition of ProcureAbility, a procurement consulting firm headquartered in Jacksonville, Florida.

Established in 1996, ProcureAbility specializes in delivering advisory, managed services, digital solutions, and staffing/recruiting services exclusively dedicated to procurement. Their comprehensive service portfolio encompasses procurement assessment and strategy, technology optimization and enablement, managed sourcing services and execution, contract management and administration, analytics-as-a-service, executive search, and direct hire recruitment.

This acquisition by Jabil is set to bolster its existing procurement practice, which offers procurement strategy consulting, technology, market insights, and managed services. More importantly, ProcureAbility will maintain its independence.

Frank McKay, Chief Supply Chain and Procurement Officer at Jabil, commented, "Our collaboration is reshaping the procurement landscape and our approach to providing solutions to organizations, enabling them to instigate transformative changes and generate value. ProcureAbility and Jabil share a common vision for growth, client service, innovation, and long-term success."

Closing Thoughts

This concludes the consulting M&A news for the week. If there are any deals I overlooked, please reach out and inform me. Until then, stay well, and I look forward to reconnecting with you next week for another recap of consulting M&A news. Cheers!