"This investment greatly enhances Navigant Consulting's international litigation and investigations presence," stated Timothy Hart, Managing Director in Navigant Consulting's Litigation & Investigations practice. "The team joining Navigant Consulting has been the premier provider of forensic accounting, litigation and valuation services in Canada for 30 years, with senior leaders that are seasoned as testifiers and as leads in prominent public investigations. The skills and expertise of Bob Macdonald and his team are extremely complementary to Navigant's existing practice of more than 600 dispute and investigation professionals, and adds significant breadth and depth to our core Litigation & Investigations practice."
The team joining Navigant Consulting consists of 54 billable consultants based in Toronto and Ottawa. Primary services offered by the team include forensic accounting, fraud investigations, general litigation consulting, business intelligence and business valuation services.
"Navigant Consulting has a strong reputation in the litigation and investigations consulting arena and we are looking forward to the opportunity to be part of their growing international practice," stated Bob Macdonald, Chairman, Kroll Lindquist Avey. "The combination of Navigant's existing team, along with our recognized presence in Canada, will allow us to bring added value and solutions to clients."
Senior team members joining Navigant Consulting include:
Robert Macdonald - Mr. Macdonald's forensic accounting career in Canada spans 30 years. He has investigated hundreds of complex civil and criminal cases and presented evidence in court and before international regulatory tribunals. Mr. Macdonald's practice focuses on fraud investigations for corporations, governments, law enforcement agencies and financial institutions. He was recently one of the lead forensic accountants for the Gomery Commission of Inquiry investigating the sponsorship scandal in the Canadian federal government.
Alan Stewart - Mr. Stewart has practiced forensic accounting since 1989 and he has conducted many high-profile investigations throughout North America and in the Untied Kingdom. His casework focuses primarily on the securities industry, where he investigates complex transactions, regulatory infractions and fraud. He also has extensive experience in the investigation of accounting irregularities behind financial statement fraud in public companies.
Ted Baskerville - Mr. Baskerville is one of the profession's leading forensic accountants, specializing in fraud and corporate investigations, international arbitrations, and commercial litigation. For more than 20 years, he has directed high-profile investigations into corporate fraud, management and employee corruption, money laundering, commercial disputes and insurance claims throughout North America, Europe, Asia and the Middle East.
Farley Cohen - Mr. Cohen has specialized in business valuation and the quantification of economic damages since 1987. He conducts business valuations for the purchase and sale of companies in varying industries, for estate and tax planning, shareholder disputes and family law. Mr. Cohen also serves as a mediator or arbitrator in equity valuations, income determinations, lost profits and other disputes.
The purchase price was approximately $20 million. Revenue and pro forma operating income in 2004 for the practices acquired were approximately $17 million and $3.7 million, respectively. The acquisition is expected to be accretive during its first 12 months. Additional transaction details were not disclosed.
About Navigant Consulting
Navigant Consulting, Inc. (NYSE:NCI) is a specialized independent consulting firm providing dispute, financial, regulatory and operational advisory services to government agencies, legal counsel and large companies facing the challenges of uncertainty, risk, distress and significant change. The Company focuses on industries undergoing substantial regulatory or structural change including healthcare, energy and financial and insurance services, and on the issues driving these transformations. "Navigant" is a service mark of Navigant International, Inc. Navigant Consulting, Inc. (NCI) is not affiliated, associated, or in any way connected with Navigant International, Inc. and NCI's use of "Navigant" is made under license from Navigant International, Inc. More information about Navigant Consulting can be found at www.navigantconsulting.com.
Except as set forth below, statements included in this press release, which are not historical in nature, are intended to be, and are hereby identified as, "forward-looking statements" as defined within the Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by words including "anticipate," "believe," "intends," "estimates," "expect" and similar expressions. The Company cautions readers that forward-looking statements, including without limitation, those relating to the Company's future business prospects, revenues, working capital, liquidity, income and margins, are subject to certain risks and uncertainties that could cause actual results to differ materially from those indicated in the forward-looking statements, due to several important factors, including those identified from time to time in the Company's reports filed with the SEC. Such risk factors include, but are not limited to: acquisitions and acquisitions under consideration, follow-on offerings, revenues and financial estimates, significant client assignments, recruiting, attrition and new business solicitation efforts, judicial proceedings, regulatory changes and general economic conditions.