Hitachi Announces Purchase of Grant Thornton LLP e-Business Consulting Group
Group to Form a Core Component of Hitachi Solutions Initiative --
TOKYO, Japan, October 25, 2000 - Hitachi, Ltd. (TSE: 6501/NYSE: HIT) today announced that it has signed a definitive agreement to acquire the e-Business Consulting Group of Grant Thornton LLP for about 175 million dollars. Last November, Hitachi announced the mid-term business plan "i.e. HITACHI Plan" to further the company's "best solutions partner" initiative including investments for acquisitions and alliances. In making the announcement Shigemichi Matsuka, executive vice president and director of Hitachi, Ltd., said, "The purchase is part of our plan to transition Hitachi from a leading hardware provider to a global leader in IT solutions. The acquisition will be a core component for Hitachi's IT solutions business in North America and enable the company to fully enter the global IT services market."
As reported in February 2000, Grant Thornton, North America's sixth largest accounting and management consulting firm, implemented a plan to unlock the value of its e-Business Consulting Group by evaluating strategic options for the group. The e-Business Consulting Group has a core competency in e-Business, information technology (IT) consulting and systems integration for mid-size and Fortune 1000 companies. With Hitachi's in-depth infrastructure experience and global capabilities, the e-Business Consulting Group will continue to focus on its core competencies and expand its penetration in the IT solutions marketplace.
"We wanted a strategic partner with a long-term vision," stated Chuck Scoville, managing partner of Grant Thornton's e-Business Consulting Group. "Keeping our clients current with IT advances requires people with knowledge and experience. We wanted a partner that understood the IT market and one that would give us the tools, such as equity ownership, to hire and retain top people. Hitachi fits all of our criteria and we can now expand our end-to-end e-Business services and grow our international footprint together with Hitachi."
Following the completion of the acquisition, a new company will be created comprising the business of Grant Thornton's e-Business Consulting Group, including the unit's management. The new company will be managed as an independent business unit and include incentive plans such as stock options. An initial public offering (IPO) is a potential in the future when the unit is significantly larger and the capital markets are more favorable. Additional investments, including other acquisitions, are planned. The target is to build a $1 billion global IT services business in 5 years.