Carlyle Group takes 51% share in PA Consulting
The Carlyle Group has invested a 51% share in PA Consulting Group, valued at $1bn and expected to close in December 2015, subject to a shareholder vote scheduled for next month.
PA is a consulting, technology and innovation firm that is delivering on an ambitious growth strategy across Europe, the Americas and the Middle East.
The partnership with Carlyle will enable PA to build on this and accelerate its growth plan through geographic expansion and the acquisition of consultant teams and smaller firms. Importantly, the investment will allow PA to retain independence, alongside current culture, brand and values. The continued share ownership by PA employees is a key feature of the transaction.
Capital for this investment will come from Carlyle Europe Partners IV (CEP IV), a European upper-mid market buyout fund. CEP IV has made four other investments in European companies as of 1 September 2015.
Alan Middleton, CEO of PA Consulting, said, “PA has made the difference for our clients and communities worldwide for over 70 years. Carlyle’s global reach, business connections and M&A experience will support a step-change in our rate of growth and allow us to continue to maintain our independence and track record for high quality innovation and delivery for our clients.”
Marcus Agius, Non-Executive Chairman of PA, commented, “Carlyle has an established reputation for building value through developing the investments they make and our discussions have borne fruit because the PA team have recognised a cultural affinity between the two groups. Both of us recognise the value of partnership and, in particular, the sharing of value created.”