KPMG and JSE-listed Sekunjalo Investments Limited announced today (effective 1 March 2011) the acquisition of leading performance management and business intelligence consultancy FIOS, in a mutually beneficial deal bringing new synergies to the market. FIOS has been a subsidiary of Sekunjalo since 2006.
“KPMG’s extensive advisory services further complemented by the specialist technical capability of the FIOS team, underpinned by the strength of the KPMG brand, brings a unique offering to the market,” said Tony Vicente, Head of Performance and Technology at KPMG. “The acquisition represents a significant step forward by KPMG in building business skill sets that are appropriate to market needs. When we ask our clients to rank improvement opportunities that will contribute to financial performance in future, they strongly indicate the need for real business intelligence, rigorous budgeting and forecasting, and sound interpretation and advice from finance. It now means that we can better jointly develop sophisticated solutions to address their needs, combining financial management and reporting, business intelligence and IT-enabled business solutions.”
There has been an increasing trend towards the convergence of strategic consulting, business advisory and systems implementations, which has created an expectation in the business sector for seamless, end-to-end solutions. The incorporation of FIOS will enable KPMG to better address these expectations by providing a natural extension to its current service lines.
“Through an extensive process, FIOS emerged as our number one choice on a number of levels for this pro-active acquisition,” said Vicente.
Andrew Connold, CEO of Sekunjalo Technology Solutions Group, said “recent changes in product vendor strategies have impacted on Sekunjalo’s decision to sell. The FIOS consulting team is considered the best business intelligence and performance management consulting team in the market and will add significant value to KPMG’s service offering”.
Founded in 2003, FIOS brings a combination of financial and technical expertise and solutions to KPMG. The organisation has a strong track record with an extensive client base covering a wide range of industries, including financial services, insurance, retail, mining, manufacturing and pharmaceuticals. Predominantly responsible for implementing Performance Management technology platforms including IBM-Cognos, Informatica and Oracle-Hyperion, FIOS expertise is directed at developing solutions in budgeting and forecasting, financial consolidations, business intelligence gathering and data integration. These services are complementary to KPMG’s existing skills in International Financial Reporting Standards requirements, financial management, managed services, integrated reporting and business process re-engineering. The integration of this successful business into KPMG will create new opportunities for the existing client bases of both firms while at the same time presenting new, previously unchartered opportunities.
Vicente said, “The changed economic environment had a marked impact on the priorities of our clients who believe improved planning and budgeting are now top of the agenda. The new skills we are acquiring will allow us to help clients decide what information to access, in the appropriate format, when it’s required and to whom it should be directed – all adding immense value to our service offerings”.
Brad McCreedy, Managing Director of FIOS and KPMG partner-elect said “our joining KPMG will mean that a client will be able to get all the required services from one trusted provider. Instead of having a scenario where change management, project management and technical support are sourced from different providers, we now can provide a seamless offering through a one-stop shop, also enhancing accountability through a single immediately identifiable service provider.”
“As part of KPMG, FIOS will gain an introduction to greater numbers of large corporate customers and, together with KPMG, have a more comprehensive value proposition to offer the market than as a small specialist company,” says Connold.
The KPMG footprint allows for skills exchange and business opportunities to be realised in the broader global and African markets. Both FIOS and KPMG have an African presence, with KPMG having identified Performance and Technology as a strategic business growth pillar across the world.