AT Kearney completes management buy-out from EDS Management
Our Corporate Bureau
01 February 2006
AT Kearney, which traces its roots back to 1926, the year AT Kearney's predecessor firm was founded in Chicago (Andrew Thomas Kearney became a partner in this firm in 1929), was bought by EDS in 1995.
Last year, EDS announced plans to sell the firm, and eventually settled on a management buy-out as the best way to divest the consultancy. More than 170 senior A T Kearney staff from 26 countries participated in the transaction as investors, acquiring 100 percent of the equity in the firm.
Financial details were not disclosed.
In November 2005, when the buy-out agreement was reached, Kearney vice-president Anne Deering who also chairs the firm''s 'officer leadership council' which represents the interests of senior staff to top management, said the deal was recognised as being 'win-win'.
"You might say that a miracle has happened-independent analysts on both sides have said this is a desirable agreement," she added.
Although a deal has been in the offing for some time, a structure which would satisfy both EDS shareholders without creating an unacceptable debt burden for Kearney partners proved elusive.