Government Consultancy M&A: Guidehouse Acquires Public Sector Advisory Practice of Grant Thornton

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Public sector consulting firm Guidehouse, backed by private equity firm Veritas Capital, has acquired the public sector advisory practice of Grant Thornton LLP. Financial terms of the deal were not disclosed.

This is technology M&A deal number 754 that ChannelE2E has covered so far in 2022. See more than 1,000 technology M&A deals involving MSPs, MSSPs & IT service providers listed here.

Guidehouse Acquires Public Sector Advisory Practice of Grant Thornton

Guidehouse, founded in 2018, is based in Washington, D.C. The company has 2,990 employees listed on LinkedIn. Guidehouse’s areas of expertise include consulting services to the public sector and commercial markets, management, technology and risk consulting.

Grant Thornton, founded in 1924, is based in Chicago, Illinois. The company has 15,598 employees listed on LinkedIn. Grant Thornton’s areas of expertise include audit, tax, advisory services, consulting, operations, supply chain, public sector, manufacturing and strategy.

The acquisition of Grant Thornton’s public sector advisory practice expands Guidehouse’s expertise in federal, state and local government consulting in the areas of finance, human capital management, information technology, data analytics and performance management. The move increases Guidehouse’s headcount with additional personnel in Washington, D.C. and other U.S. cities, the companies said.

Guidehouse Acquires Grant Thornton: Executive Perspectives

Scott McIntyre, CEO, Guidehouse

Seth Seigal, CEO, Grant Thornton

Scott McIntyre, CEO of Guidehouse, commented on the news:

“We are excited to welcome our new colleagues to Guidehouse, building on the strength of our model, continued innovation, and driving the best outcomes for our clients. This transaction aligns to our strategy to expand expertise and capabilities in support of our clients’ most pressing challenges. With this strategic combination, we anticipate experiencing opportunities for both significant growth and advancement for our colleagues.”

Seth Siegel, CEO at Grant Thornton, added:

“Grant Thornton continues to accelerate its growth by delivering the highest quality solutions and a peerless experience to our clients. The divestiture of our Public Sector Advisory practice is well-aligned with our strategy and will enhance our value to clients by sharpening the firm’s focus on our integrated offerings across Audit, Tax and Advisory services, where we see significant growth opportunities. Additionally, we will further enhance our capital position, strengthen the firm’s quality-focused market position and create compelling opportunities for our colleagues.”

Ramzi Musallam, CEO and managing partner of Veritas, said:

“Grant Thornton’s Public Sector Advisory practice has a strong track record of growth, serving as a valuable partner to address the critical needs of its clients. This transaction creates a firm even better positioned to serve clients and drive lasting value for all stakeholders. We are excited to continue to support the Guidehouse team as the firm welcomes the Grant Thornton Public Sector Advisory team, driving growth and delivering critical capabilities to clients together.”

Milbank LLP and Covington & Burling LLP are acting as legal counsel to Guidehouse and Veritas Capital. Deutsche Bank Securities is acting as exclusive financial advisor to Grant Thornton, and Morrison & Foerster LLP and Akerman LLP are acting as legal counsel.

Government IT M&A Activity

Merger and acquisition (M&A) activity involving government-focused IT service providers (ITSPs), MSPs, MSSPs, cybersecurity and technology consultancies has been steady to strong. Recent acquisitions ChannelE2E has tracked in the space include EY’s acquisition of Cambria Solutions, Thrive’s acquisition of DSM and WestView Capital Partners’ backing of Microsoft partner Summit 7. You can see more government IT M&A deals here.

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