Veritas Capital is acquiring PricewaterhouseCoopers (PwC) U.S. Public Sector business, the companies confirmed today. Upon closing, the U.S. Public Sector business will be renamed and will operate as an independent company.
Financial terms were not disclosed, but December 2017 rumors about the deal estimated the business could be worth about $500 million.
The acquired business, with roughly 1,500 employees, serves federal, state and local government agencies. Key services include financial management, strategy development, program management, operational effectiveness and organization design, Veritas Capital says.
Ramzi Musallam, CEO and Managing Partner of Veritas Capital, in a prepared statement 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, in a prepared statement added:
“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.”
Rumors in December 2017 suggested PwC would sell off the government consulting business to eliminate potential conflicts of interest with the company’s audit arm — where government opportunities also are growing rapidly.