Cambridge Technology Partners Acquires Peter Chadwick Holdings Limited; Gains Additional Consulting Capabilities, Industry Expertise, and Geographic Reach.CAMBRIDGE, Mass.--(BUSINESS WIRE)--Nov. 17, 1997--Cambridge Technology Partners (Massachusetts), Inc. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :CATP CATP Cambridge Technologies (stock symbol) CATP Coverage Acceptance Test Plan CATP Committee of Adaptation to Technical Process ) (Cambridge) and Peter Chadwick John Peter Granville Chadwick is a first class cricketer who played 6 matches for Yorkshire County Cricket Club between 1960 and 1965. A right handed batsman he scored 106 runs at 17.66 with a top score of 59 against Middlesex. Holdings Limited (Peter Chadwick) today announced the terms of an offer to be made by Cambridge to purchase all of the equity securities of Peter Chadwick. The offer is subject to the tender of at least 90% of each class of Peter Chadwick's securities on or about November 24, 1997, unless extended by Cambridge. Shareholders representing approximately 31% of Peter Chadwick's issued ordinary share capital agreed to the terms of the offer following the announcement. The transaction will be completed in a stock-for-stock acquisition in which Cambridge will issue approximately 3,255,000 shares for all of the equity securities of Peter Chadwick. In connection with the transaction, 10% of the Cambridge shares will be held in escrow escrow Instrument, such as a deed, money, or property, that constitutes evidence of obligations between two or more parties and is held by a third party. It is delivered by the third party only upon fulfillment of some condition. to cover any reimbursable claims. The acquisition will be accounted for under the pooling of interests Pooling of Interests An accounting method, used in mergers and acquisitions, where the balance sheet items of the two companies are simply added together. Notes: The opposite of pooling of interests is the purchase acquisition method. method and is expected to be accretive for Cambridge's last two fiscal years and the nine months ended September 30, 1997. Cambridge expects to incur a one-time charge of approximately $4.5 million in the current fiscal quarter for costs related to the business combination. The acquisition will provide Cambridge with additional resources in its management consulting Noun 1. management consulting - a service industry that provides advice to those in charge of running a business service industry - an industry that provides services rather than tangible objects practice, augmenting its existing capabilities to create a business unit that employs 500 professionals worldwide. It enables Peter Chadwick to continue its strategy of creating the world's leading implementation consultancy by integrating Cambridge's leading-edge consulting and information technology deployment skills with Peter Chadwick's offerings. The merger brings together two leaders in their respective fields. Both are committed to the continued strong growth of their respective businesses. At the same time, they plan to work together to create a new, seamless offering based on their shared approach and individual areas of expertise. The merger is expected to enhance Cambridge's offerings by: Extending Cambridge's management consulting capabilities, which include process innovation and business renewal, to include change implementation through Peter Chadwick's focus on clients' operational strategies, on performance improvement, and on day-to-day execution. Enabling Cambridge to provide end-to-end business transformation services to clients by identifying opportunities for business operations Business operations are those activities involved in the running of a business for the purpose of producing value for the stakeholders. Compare business processes. The outcome of business operations is the harvesting of value from assets change, implementing those changes, and deploying supporting applications. Extending Cambridge's consulting practice, which is primarily U.S.-based, further into Europe by building critical mass in key European markets such as the U.K., France, Germany, and the Benelux countries. Expanding Cambridge's industry expertise into new sectors, such as the automotive, energy, engineering, food, and chemicals industries. Peter Chadwick, which is based in the U.K., is a leader in the implementation of operational strategies and performance improvement programs. Founded in 1987, the company has seen its revenues grow at an average annual rate of 42%. For the fiscal year ended June 30, 1997, Peter Chadwick's revenues and pre-tax profits were $50.5 million (30.7 million pounds) and $6.8 million (4.1 million pounds), respectively. It currently has more than 325 employees and has operating subsidiaries An operating subsidiary is a business term frequently used within the United States railroad industry. In the case of a railroad, it refers to a company that is a subsidiary but operates with its own identity and rolling stock. in the U.K., France, Belgium, Germany, and the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. . Peter Chadwick's average contract size is $1 million, with an average project length of eight months. Much like Cambridge, Peter Chadwick approaches services delivery by emphasizing speed; providing a high return on investment, typically delivering annual savings to clients of three to five times the cost of its project; offering clients fixed time, fixed price contracts; and building consensus among key client stakeholders Stakeholders All parties that have an interest, financial or otherwise, in a firm-stockholders, creditors, bondholders, employees, customers, management, the community, and the government. . The company will be fully integrated with Cambridge Technology Partners and will become part of its Management Consulting strategic business unit, which will be headquartered in London. Quentin Baer and Ian Clarkson, co-founders and respectively the chairman and chief executive of Peter Chadwick, will take overall responsibility for the management and direction of the Management Consulting business unit. They will become executive vice presidents of Cambridge, reporting to James K. Sims, president and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of Cambridge Technology Partners. "This acquisition is an exciting one for Cambridge," said Sims. "There is synergy between Peter Chadwick's offerings and ours. Clients will benefit from its proven track record of delivering measurable and sustainable improvements to client business units. In addition, the company's rapid growth, high client retention rate of approximately 70%, and profitable financial structure complement Cambridge's business model extremely well." "This merger makes sense for Peter Chadwick's continued development, building upon our growth and success to date," said Quentin Baer, chairman of Peter Chadwick. "We recognize that the information technology and management consulting industries are converging, and that we need to broaden and deepen our IT systems capabilities to improve our ability to deliver rapid, measurable benefits to our customers. In addition, given the trends toward globablization and complex, enterprise-wide projects, we need to continue to develop our capability to deliver on a global scale." The merger also accelerates Peter Chadwick's ability to enter new information- and technology-rich sectors, such as retail and financial services The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. , and provides it with a significant U.S. presence. About Cambridge Technology Partners Cambridge Technology Partners is a new breed of consulting and systems integration firm. Since its founding in 1991, the company has applied its unique core values to the consulting and application development markets to fundamentally reinvent re·in·vent tr.v. re·in·vent·ed, re·in·vent·ing, re·in·vents 1. To make over completely: "She reinvented Indian cooking to fit a Western kitchen and a Western larder" the way business and technology solutions are delivered. Working within a fixed time/fixed price model, Cambridge's services span strategic consulting, process innovation, custom and package software deployment Software deployment is all of the activities that make a software system available for use. The general deployment process consists of several interrelated activities with possible transitions between them. (including ERP (Enterprise Resource Planning) An integrated information system that serves all departments within an enterprise. Evolving out of the manufacturing industry, ERP implies the use of packaged software rather than proprietary software written by or for one customer. applications), networking, and training to rapidly deliver end-to-end business systems that create immediate bottom-line impact for its clients. Cambridge has 41 offices and more than 2,600 employees worldwide. Cambridge on the Web: http://www.ctp.com . CONTACT: Cambridge Technology Partners Mary-Beth Henry/Art Toscanini, 617/374-8640 (IR) mhenr@ctp.com Tara Knowles, 617/374-8325 (Public Relations public relations, activities and policies used to create public interest in a person, idea, product, institution, or business establishment. By its nature, public relations is devoted to serving particular interests by presenting them to the public in the most ) tknow@ctp.com |
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