Wednesday, 14 October 2009

Perot grabs Chinese take-away

(By Anthony Miller – Wednesday 14th October 2009 8:30am). We missed this announcement over the weekend, but it appears that Perot is to acquire the BearingPoint China consulting business. Terms were not disclosed. The deal will require clearance from both the Chinese government and the US Bankruptcy Court – on account of the fact that BearingPoint filed for Chapter 11 bankruptcy protection back in February (see BearingPoint files for bankruptcy). However, rather than restructure, BearingPoint is to sell off its key operations.

Earlier this year Perot won some deals in China's healthcare, manufacturing and airline sectors, whereas BearingPoint – “among the "Top 10 IT Consulting Firms in China” – focuses on China's energy, automotive, insurance, and financial services industries. It’s hard to say whether this is a ‘good’ acquisition without knowing the price and profitability of the BearingPoint operation - according to the Wall Street Journal, BearingPoint China has 300 employees and posted $35m revenue last year, up 14%. On the face of it, though, the market match seems to make sense, and I will begrudgingly concede that it may also give Perot’s new owner, Dell, some useful new contacts in China.

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