Private equity investment firm Veritas Capital is to buy Pricewaterhouse Coopers Public Sector business for an undisclosed sum.
With approximately 1,500 partners and staff, PwC’s U.S. Public Sector business helps governments and multilateral agencies solve complex business problems through its capabilities in financial management, strategy development, program management, operational effectiveness and organization design. The business has 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 U.S. 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.
The sale only includes PwC’s public sector business, and service for public sector clients will be uninterrupted throughout the transition.
Under Veritas’ ownership, the U.S. Public Sector business will retain its current leadership and talent base. Upon closing, the U.S. Public Sector business will be renamed and will operate as an independent company.
“Our U.S. 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, U.S. 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.”
Ramzi Musallam, chief executive officer and managing partner of Veritas Capital said, “We could not be more pleased to acquire the U.S. 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.”
The transaction is agreed upon and the closing is subject to regulatory approval. 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.