Consulting M&A Weekly Round-up (8th to 14th October, 2023)

Welcome back to another consulting M&A weekly round-up article, where I'll bring you the latest developments and insights from the industry’s most significant movements. This week’s consulting M&A news has been spearheaded by KPMG Canada and Aditi Consulting.

With so many significant developments in the industry, it’s essential to stay informed and engaged. Fortunately, I have all the insights needed to make sense of the complex world of consulting M&A.

The deals and developments shaping the future of the industry are both fascinating and intricate. So, without further delays, let us dive straight in!

#1. KPMG Canada purchases Montreal accountancy Cloutier+Longtin

KPMG Canada has recently completed the acquisition of the boutique accounting firm, Cloutier+Longtin.

Founded in 1991, Cloutier+Longtin is based in Saint-Eustache, situated on the North Shore of Montreal. The company specializes in delivering professional services in accounting and taxation, as well as offering consultancy services in various domains, including business planning, turnaround strategies, acquisitions, divestitures, IT optimization, and human resources support.

KPMG’s acquisition of Cloutier+Longtin represents a significant step in expanding the Big Four firm’s private enterprise practice within Quebec. This practice primarily serves entrepreneurs, family-owned businesses, and emerging companies. With this acquisition, the practice now boasts a team of over 300 professionals in the province.

Benoit Lacoste Bienvenue, Managing Partner for KPMG in Quebec, expressed his enthusiasm, stating, “The addition of Cloutier+Longtin to the KPMG team strengthens our capacity to cater to the needs of entrepreneurs on the North Shore of Montreal, a strategically vital region for our firm."

He further added, "This marks our sixth acquisition for KPMG Private Enterprise in Quebec since 2020, reaffirming our unwavering commitment to supporting entrepreneurs in the province and contributing to the growth of their local communities.”

#2. J.S. Held purchases Phoenix Management Services and Phoenix IB

J.S. Held, a prominent consulting firm, has recently completed the acquisition of Phoenix Management Services, a turnaround and transaction advisory company located in Philadelphia, along with their affiliate, Phoenix IB, a specialized investment bank dedicated to handling unique financial situations.

Established in 1985, Phoenix Management has a rich history of successfully executing over 1,600 client engagements spanning across more than 50 industries, primarily serving mid-market enterprises. Their comprehensive service offerings encompass expertise in bankruptcy advisory, operational enhancement and restructuring, turnaround management, interim leadership, and investor support services.

On the other hand, Phoenix IB is a registered broker-dealer under Finra, focusing on providing specialized investment banking services tailored to mid-market businesses. They excel in managing intricate financial transactions, often involving tight funding deadlines, increased leverage requirements, rapid developments, and distressed or turnaround scenarios.

David Weiner, Executive Vice President at J.S. Held, expressed his enthusiasm for the acquisition, stating, “What drew us to this acquisition were the exceptional qualities embodied by the visionary and entrepreneurial leaders, coupled with an unwavering commitment to operational excellence that enables clients to optimize their enterprise value."

He further stated, "The addition of the Phoenix team strengthens our collective expertise across a broad spectrum of sectors, including construction, energy and power, healthcare, high tech, manufacturing, retail, telecom, transportation, and others.”

#3. Aditi buys IT consultancy Resolvit

Aditi, an IT consulting company based in Seattle, has recently completed the acquisition of Resolvit, an IT and management consulting firm headquartered in New Orleans.

Established in 2002, Resolvit collaborates with clients across a wide spectrum of industries, including telecommunications, technology services, retail, education, manufacturing & distribution, financial services, and healthcare/life sciences. Their service portfolio encompasses application development, cloud engineering, cybersecurity, data solutions, DevOps, digital transformation, quality assurance automation, IT staffing, and merger and acquisition support.

Aditi’s acquisition of Resolvit will notably bolster its presence in Latin America, where it currently maintains an office in Ciudad Del Sol, Mexico, as well as its operations in India, with offices in Bangalore and Vadodara.

Raja Narayana, the CEO of Aditi, expressed enthusiasm about the acquisition, stating, “The addition of Resolvit is a significant and exciting development for us. It will enable us to better serve clients from both organizations. Our cultures align exceptionally well, as we share common values focused on fostering long-term customer loyalty, delivering extensive expertise across a continuously expanding array of technology solutions, and providing tailored engagement models that adapt to the evolving needs of our clients.”

#4. Conclusion doubles down in Portugal with record Neotalent deal

Following its recent expansion into the Portuguese market, Conclusion has accelerated its growth by acquiring Neotalent, a company headquartered in Lisbon with additional offices in Porto and Madrid.

Neotalent specializes in offering consulting, delivery, and IT staffing services across various domains, including application services, cloud solutions, data management, and software engineering. Furthermore, they operate a managed services division that provides nearshore support to clients in Portugal and Spain.

Engbert Verkoren, CEO of Conclusion, expressed the significance of this development, stating, “This marks a significant milestone for Conclusion. With the addition of Neotalent to our portfolio, we have achieved the critical mass required to establish a highly effective nearshore capability.”

#5. CGI expands Miami presence with acquisition of Momentum Consulting

Montreal-based management and technology consulting firm, CGI, has recently completed the acquisition of Momentum Consulting Corp, a Miami, Florida-based IT consultancy.

Established in 2002, Momentum specializes in a range of areas, including digital transformation, data and analytics, delivery excellence, and managed services. Their offerings encompass web and mobile development, UX design, cloud integration, big data and artificial intelligence, project management, and round-the-clock monitoring and support.

CGI’s acquisition of Momentum is set to expand its presence in Miami and strengthen its overall operations. In the United States, CGI currently boasts a workforce of around 13,000 employees across 80 offices.

According to Tim Hurlebaus, the President of CGI’s US commercial and state government operations, “CGI and Momentum Consulting Corp. are an excellent cultural match, as both companies share a profound commitment to their personnel, a steadfast dedication to sound management principles, and an unwavering drive for client excellence.”

Closing Thoughts

And that’s a wrap for this week’s consulting M&A weekly news. Thanks for reading! If we happened to missed out on any deals, then please write to us and let us know.

So, until next week, its bye for now. Cheers!