FTI Consulting to Aquire Ten Eyck Associates
Increases FTI Depth in Sarbanes Oxley and Related Forensic Consulting Services
Annapolis, MD - October 9, 2003
ANNAPOLIS, MD, October 9, 2003—FTI Consulting, Inc. (NYSE: FCN), the premier national provider of turnaround, bankruptcy and litigation-related consulting services, today announced that it has reached an agreement to acquire the operations and assets of Ten Eyck Associates. The transaction is expected to close on or before October 31, 2003.
Ten Eyck is a highly regarded consulting group that specializes in Securities and Exchange Commission (SEC) investigations and securities law litigation, SEC accounting and enforcement consulting, fraud investigations, accountants malpractice, director and officer liability issues, financial and accounting crisis management, strategic advice, and other financial litigation consulting services. Founded in 1993 and managed by Ernest Ten Eyck, former Assistant Chief Accountant of the SEC from 1974 to 1980 and nationally recognized accounting and SEC expert, Ten Eyck comprises a seasoned team of 20 billable professionals averaging more than 25 years of experience at the SEC and in national accounting firms and businesses located in Washington, D.C., and King of Prussia, Penn. Ten Eyck's business mix is heavily weighted toward engagements on behalf of the top securities counsels in the country and a broad spectrum of corporate clients, including work for boards of directors, audit and special committees, individuals, and public and private companies.
Ten Eyck has offices in Washington, D.C., and King of Prussia. Roy Van Brunt heads up the Washington, D.C., office that is staffed with a number of former SEC accounting professionals from the SEC's Enforcement and Corporation Finance divisions. Ten Eyck's recent growth has been due to its specialized SEC expertise and a growing demand for its services resulting from Sarbanes Oxley accounting requirements, Public Company Accounting Oversight Board and SEC-related actions, increased focus on technical accounting issues, and corporate malfeasance. Mr. Ten Eyck, Mr. Van Brunt, and certain other members of Ten Eyck management will enter into four-year employment agreements with FTI. Ten Eyck's revenues for the preceding 12 months were approximately $8.5 million. The acquisition is expected to be slightly accretive to FTI's earnings per share in 2003 and 2004, assuming completion by October 31, 2003. Further details of the transaction were not disclosed.
Commenting on the acquisition, Jack Dunn, FTI's chairman and chief executive officer, said, “The combination of our two firms increases FTI's depth and critical mass in Sarbanes Oxley and related forensic and investigative consulting services in an expanding market. It also creates valuable synergies that will enable us to leverage our complementary skills and deep professional resources nationwide while enhancing FTI's national and international regulatory consulting expertise.” Stewart Kahn, president and chief operating officer of FTI, commented, “Ten Eyck's established relationships in the legal community also offer significant opportunities for FTI Consulting to perform an even broader range of investigative and forensic assignments. When fully integrated with our existing practices serving these markets, we will have the expertise, size and national scope to meet the needs of the largest engagements in this area. We look forward to expanding this platform to continue the growth of our investigative business.”
About FTI Consulting
FTI Consulting is a multi-disciplined consulting firm with leading practices in the areas of turnaround, bankruptcy and litigation-related consulting services. Modern corporations, as well as those who advise and invest in them, face growing challenges on every front. From a proliferation of “bet-the-company” litigation to increasingly complicated relationships with lenders and investors in an ever-changing global economy, U.S. companies are turning more and more to outside experts and consultants to meet these complex issues. FTI is dedicated to helping corporations, their advisors, lawyers, lenders and investors meet these challenges by providing a broad array of the highest quality professional practices from a single source.
This press release includes "forward-looking" statements that involve uncertainties and risks. There can be no assurance that actual results will not differ from the company's expectations. The company has experienced fluctuating revenues, operating income and cash flow in some prior periods and expects this may occur from time to time in the future. As a result of these possible fluctuations, the company's actual results may differ from our projections. Other factors that could cause such differences include pace and timing of additional acquisitions, the company's ability to realize cost savings and efficiencies, competitive and general economic conditions and other risks described in the company's filings with the Securities and Exchange Commission.