Merger & Acquisition - Ibm and Pricewaterhouse Consulting

before MERGER & ACQUISITION of IBM and Pricewaterhouse Consulting 1. WHY UNDERLYING REASONS FOR THE PROJECT over the past five years, IBM has quietly transformed itself into a software, firmness and services company. With the transformation from a hardware vendor to a solution provider, it has entered the area of consulting services. IBM bought PricewaterhouseCoopers Consulting (PwCC) in October 2002 and became the worlds largest engineering science services company, with annual revenue of $40 billion. By comparison, its next-largest competitor, electronic Data Systems Corp., posted $21.5 billion in sales at the same year. The acquisition by IBM, which already has huge front line in the consulting market, affected other companies such as fair weather Microsystems, Dell Computer, Hewlett-Packard and EDS. IBM is a strong technology player; PwCC is a strong player in strategic consulting, particularly in the enterprise area. The real strength of this acquisition is the ability of IBM to render strategic consulting to corporate management where it has been weak. PwCC has strategic consulting expertise, but was in the main considered weak in technology. With this merger both the companies can concomitant their strengths.

With the closing of this sale, PwCC effectively completed the reorganization that began more than both years ago of 2002, and fulfills the commitment to unleash the consulting unit from the restrictive restraints of the industry. Combining PwCC with IBM overflowingy achieves the goals set for the separation, it also provides clients and professionals with greater opportunities and portal to innovative solutions. 2. HOW M&A PROPOSED (STOCK, CASH, STRUCTURE) In 2002, IBM completed 12 acquisitions at an aggregate cost of $3,958 million, and the largest acquisition was PwCC. IBM paid for the acquire of PwCC $3,474 million ($2,852 million in cash from reserves and flowing cash flow, $294 million primarily in the form of dependent shares of IBM common stock and... If you want to get a full essay, order it on our website: Orderessay

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