Veritas Capital, a private equity investment firm, announced that an affiliate of Veritas has signed a definitive agreement with PricewaterhouseCoopers LLP (PwC), the U.S. member firm of the PricewaterhouseCoopers network, to acquire its US Public Sector business.
With approximately 1,500 partners and staff, PwC’s US Public Sector business helps governments - federal, state and local - and multilateral agencies solve complex business problems, improve processes and manage risk through its capabilities in financial management, strategy development, program management, operational effectiveness and organization design. The business has long-standing relationships with and serves as a trusted partner to clients such as the Departments of Defense, Homeland Security, Veterans Affairs, Health and Human Services, and The Department of State, as well as numerous state and local governments. The US Public Sector business is also the only professional services firm to win the prestigious Malcolm Baldrige National Quality Award, the nation’s highest award for quality management systems.
“Our US Public Sector business has an excellent brand and client base with a strong record of growth, and this transaction will provide the Partners and staff with an opportunity for continued development for both their business and careers,” said Tim Ryan, US chairman and senior partner, PwC. “Furthermore, today’s announcement enables our US firm the opportunity for continued growth and investment to best provide ongoing quality and value to our clients.”
This sale is specific to the US Public Sector business of PwC, and work in progress for public sector clients will be uninterrupted during the transition. Under Veritas’ ownership, the US Public Sector business will retain its current leadership and talent base and continue to deliver trusted consulting services to its clients. Upon closing, the US Public Sector business will be renamed and will operate as an independent company. PwC anticipates that it will, as appropriate, continue to work with the Public Sector business through acceptable teaming arrangements.
Ramzi Musallam, Chief Executive Officer and Managing Partner of Veritas Capital said, “We could not be more pleased to acquire the US Public Sector business, which has consistently demonstrated visionary leadership, deep sector understanding, and an unparalleled commitment to helping its clients solve pressing business issues. These unique capabilities have resulted in a highly differentiated platform with industry-leading growth. We look forward to partnering with the management team and assisting with our government sector expertise to continue delivering value to the clients and embark on the next stage of expansion.”
Scott McIntyre, PwC US Public Sector Leader said, “We are delighted to partner with Veritas Capital, which has a strong history of successful investments in our sector. The team has demonstrated an impressive grasp of our markets and brought valuable relationships to our business given their wide-ranging network in the government market. Under Veritas stewardship, we are extremely well-positioned as a standalone company and excited to capitalize on the many new opportunities ahead.”
The transaction is agreed upon and both parties are working toward the deal’s closing. The closing is subject to regulatory approvals and other conditions that are customary for transactions of this type and is expected to take place shortly following the completion of these conditions. Morgan Stanley & Co. LLC is acting as exclusive financial advisor to PricewaterhouseCoopers LLP, and Davis Polk & Wardwell LLP is serving as legal counsel. Schulte Roth & Zabel LLP is serving as legal counsel to Veritas Capital.