FTI Consulting, Inc. Announces Completion of Contemplated Transactions With LECG Corporation
- Adds 200+ Professionals Representing 2010 Annual Revenues of Approximately $80 Million- Enhances Domain Expertise and Depth in Critical Geographic and Industry Markets- Significantly Expands Competition and Economics Practice in Europe- Expands International Arbitration Practice in Europe and Latin America
WEST PALM BEACH, Fla., March 31, 2011 /PRNewswire via COMTEX/ -- FTI Consulting, Inc. (NYSE: FCN), the global business advisory firm dedicated to helping organizations protect and enhance their enterprise value, today announced that it has completed all of the previously announced contemplated transactions with LECG Corporation (NasdaqGS: XPRT). Through a combination of acquisitions and group and individual hires, the Company has, since March 1, 2011, added significant new practices that include the addition of more than 200 professionals in Europe, the United States and Latin America. FTI Consulting does not anticipate completing any further transactions with LECG.
Total consideration paid to LECG for these practices, which included accounts receivable and work-in-process, was cash of approximately $27 million plus the assumption of approximately $11 million in liabilities.
Key practices joining FTI are:
- European Competition and Economics
- European Financial Advisory
- European Tax Advisory
- European and Latin American International Arbitration
- US (San Francisco) Financial Advisory
- US Airline and Aviation
- US Energy and Electricity
- US Environmental
- US Financial Institutions Regulatory
- US Insurance
The professionals who comprise these practices generated 2010 annual revenues of approximately $80 million. They will be integrated into FTI Consulting's Economic Consulting and Forensic and Litigation Consulting Segments and the Transaction Advisory Services practice. The Company expects that integration and transition challenges will mean that its new practices will generate modest profitability in the second and third quarters of 2011. The Company further expects increasing productivity and profitability later in the year and into 2012.
Commenting on these additions, Jack Dunn, President and Chief Executive Officer of the Company, said, "We are delighted to welcome our new colleagues to FTI Consulting, who bring expertise and resources that are complementary to our current outstanding disciplines, and will fit in seamlessly with our business. The addition of this group of leading experts in strategically important practices, industries and geographies is truly exciting and, we believe, further validates our efforts to be the company that is able to attract the best professionals who advise on the most complex and challenging issues facing our clients.
"We have repeatedly said that our strategic priorities for investment are expanding and strengthening our international footprint and building domain expertise in key industries that are undergoing transformational change. These transactions reflect continued execution of that strategy. With approximately 70 percent of these professionals based in Europe and Latin America, we have significantly expanded our industry-leading antitrust/competition and international arbitration practices in Europe and extended those practices into Latin America. Furthermore, we have gained deeper industry expertise in financial services, energy and electricity, airlines and aviation as well as environmental services, which are experiencing unprecedented regulatory and governmental scrutiny and need the best counsel available.
"We are very pleased to have completed these transactions and expect to continue to invest to further globalize our platform and broaden and deepen our domain expertise."
About FTI Consulting
FTI Consulting, Inc. is a global business advisory firm dedicated to helping organizations protect and enhance enterprise value in an increasingly complex legal, regulatory and economic environment. With more than 3,800 employees located in most major business centers in the world, we work closely with clients every day to anticipate, illuminate, and overcome complex business challenges in areas such as investigations, litigation, mergers and acquisitions, regulatory issues, reputation management and restructuring. More information can be found at http://www.fticonsulting.com/.
Safe Harbor Statement
This press release includes "forward-looking statements" within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, that involve uncertainties and risks. Forward-looking statements include statements concerning our plans, objectives, goals, strategies, future events, future revenues, future results and performance, expectations, plans or intentions relating to acquisitions and other matters, business trends and other information that is not historical, including statements regarding estimates of our future financial results. When used in this press release, words such as "estimates," "expects," "anticipates," "projects," "plans," "intends," "believes," "forecasts" and variations of such words or similar expressions are intended to identify forward-looking statements. All forward-looking statements, including, without limitation, plans for future expansion of our business, are based upon our expectations at the time we make them and various assumptions. Revenues generated in the past by acquired practices and professionals may not be indicative of revenues that they will generate in the future. Our expectations, beliefs and projections are expressed in good faith, and we believe there is a reasonable basis for them. However, there can be no assurance that management's expectations, beliefs and projections will result or be achieved or that actual results will not differ from expectations. Other factors that could cause such differences include adverse general economic conditions, the pace and timing of the consummation and integration of past and future acquisitions, the Company's ability to realize cost savings and efficiencies, competitive and general economic conditions, retention of staff and clients and other risks described under the heading "Item 1A. Risk Factors" in the Company's most recent Form 10-K and in the Company's other filings with the Securities and Exchange Commission. We are under no duty to update any of the forward-looking statements to conform such statements to actual results or events and do not intend to do so.
SOURCE FTI Consulting, Inc.