The officers of management consultant firm A.T. Kearney have reached a non-binding agreement to purchase A.T. Kearney from EDS, its parent company. Upon closing, the officers would become partners in a newly independent A.T. Kearney.
A.T. was founded in Chicago 79 years ago, but was bought by EDS in 1995.
The transaction is targeted to close by the end of this year, pending customary closing conditions. Financial details of the agreement were not disclosed.
As part of the proposed transaction, A.T. Kearney and EDS would enter into a services and marketing agreement. Under the agreement, A.T. Kearney would continue to provide management consulting services to EDS and to EDS clients. The two companies also would pursue select joint go-to-market opportunities.
“Partner ownership is the model we believe works best in today’s management consulting environment,” said Henner Klein, A.T. Kearney CEO. “For clients, this means a more focused A.T. Kearney, with partners and staff whose interests are aligned with client success. For partners and staff, it means greater control of our own destiny, with increased incentives for performance and growth.”
Partners in the newly independent A.T. Kearney would own 100% of the voting equity of the firm. A.T. Kearney principals also would have the option of investing in non-voting equity shares.