Exhibit 99
PA Consulting Group and Hagler Bailly Join Forces in Global Consulting Arena
LONDON and ARLINGTON, Va., June 19 /PRNewswire/ -- PA Consulting Group (PA)
announced today that it has signed a definitive agreement to acquire the
outstanding shares of common stock of Hagler Bailly, Inc. (Nasdaq: HBIX - news),
a major international management and economic consulting firm with a significant
US presence and renowned capabilities in the energy and network industries, in a
cash transaction equal to $5.32 per share subject to possible adjustment and
valued at approximately US$96 million.
The agreement covers the acquisition of all of Hagler Bailly's operations
worldwide and builds PA's global presence to some 3,300 staff, with 700 in North
and Latin America, 2,350 in Europe, and some 250 in Asia Pacific. The combined
organization will operate under the PA global brand name from the date of
completion which is expected to be in September, subject to shareholder and
regulatory approval and customary closing conditions. Jeremy Asher, Group Chief
Executive at PA, said:
"Both our organizations are excited by the opportunity this deal gives us to
enhance the service we offer clients, through the expansion in our geographic
coverage and the strengthening of our expertise and capabilities. The
combination of PA and Hagler Bailly builds on the high growth PA has recently
enjoyed in the US. Working for many Fortune 100 companies, we have been doubling
the size of our US business each year for some time now. Hagler Bailly adds to
our expertise, especially in the energy and transport sectors, and builds our
presence significantly in both North and Latin America as well as enhancing our
presence in Asia and other parts of the world. Our two firms coming together
will create a powerful combination of capabilities to offer our clients
globally."
PA Consulting is a major management, systems and technology consultancy, working
across the energy, finance, information, manufacturing, pharmaceutical and
government sectors. With corporate headquarters in London, it has 2,700 staff
operating out of 30 offices in some 20 countries. PA is an employee-owned firm
whose 1999 net revenues were some $500 million.
Hagler Bailly is a leading provider of strategy, economic, management and
operations consulting to the energy and network industries in both the private
and public sectors, and also provides environmental and general industry
litigation consulting services. Headquartered in Arlington, Virginia, Hagler
Bailly has around 700 staff operating out of 19 offices in 9 countries. Ten of
those offices are in the US: approximately two-thirds of Hagler Bailly's 1999
gross revenues of $182 million came from work in the US and Canada.
Henri-Claude Bailly, Chairman of the Board of Directors of Hagler Bailly,
commented:
"Joining PA is a strategic decision based on what we believe is best for Hagler
Bailly and its shareholders. We believe that PA has proved the value of its
unique approach to running a global consulting firm -- in terms of its
philosophies of ownership, remuneration and long term value creation both for
clients and for employees. Furthermore, we believe that the combination of our
firms will be seen a first step in a growth strategy where we will see other
firms as well as the best consultants joining PA. By joining forces with PA we
can both take advantage of the strong synergies in our businesses and the high
degree of complementarity. In particular, Hagler Bailly's clients can benefit
from PA's change management and systems capabilities that, until now, Hagler
Bailly has been seeking through joint ventures."
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Roger W. Gale, president and chief executive officer of PHB Hagler Bailly,
Hagler Bailly's commercial consulting subsidiary, will lead PA's new combined
energy practice.
"The combination of PA's and Hagler Bailly's established energy practices will
create an industry-leading energy team with some 400 staff working in the energy
sector around the world," said Gale. "Moreover, it strengthens the service we
can provide to our energy clients in key areas such as mergers and acquisitions,
competition, markets and regulation, asset management, risk assessment,
benchmarking and retail strategy."
PA's Executive Chairman, Jon Moynihan, added:
"The acquisition of Hagler Bailly is a major landmark in PA's corporate
development that we believe will enhance our business and deliver real and
sustainable value to PA, our people and our clients. Hagler Bailly has welcomed
our approach and the combination of PA's strengths and those of Hagler Bailly
make excellent business sense, strategically, culturally and geographically."
Statements included in this press release which are not historical in nature,
are intended to be, and are hereby identified as, "forward-looking statements"
for the purposes of the safe harbor provided by Section 21E of the Securities
and Exchange Act of 1934, as amended by Public Law 104-67. Therefore, no
assurance can be given that any transaction will occur or as to the particular
terms or timing thereof. 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, and income, are subject to
certain risks and uncertainties that could cause actual results to differ
materially from those indicated in the forward-looking statement, due to several
important factors herein identified, including the difficulty in attracting,
retaining and managing professional and administrative staff, the capacity of
the company to sustain and manage growth, risks related to past and potential
future acquisitions and fluctuations in operating results, among others, and
other risks and factors identified from time to time in the Company's filings
with the SEC.
SOURCE: Hagler Bailly, Inc.
