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FTI Consulting (FCN) to Purchase Delta Partners' Assets

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FTI Consulting, Inc. (FCN - Free Report) yesterday announced that it has inked a deal to purchase certain assets of Delta Partners. Subject to customary closing conditions, the deal is expected to be closed during the third quarter of 2020. Financial terms of the deal have been kept under wraps.

Founded in 2006, Delta Partners is one of the leading telecom, media & technology (“TMT”) focused strategy consulting and investment banking firms. It has offices in Dubai, New York, Singapore, Barcelona, Johannesburg, San Francisco and Sydney. The company is focused on addressing the challenging issues faced by global and regional TMT players through multi-disciplinary services, which combine strategic, technical, financial, analytical and operational advice.

So far this year, shares of FTI Consulting have gained 10.6% against the 13.5% decline of the industry it belongs to.

 

Deal Benefits

The buyout is expected to enhance FTI Consulting’s existing TMT expertise. It will bring in Delta Partners’ TMT team of nearly 150 billable professionals, including 21 senior managing directors, thus boosting FTI Consulting’s business transformation and transactions and FTI Capital Advisors offerings on a global scale.

Meanwhile, Victor Font, chief executive officer of Delta Partners will be joining FTI Consulting as a senior managing director and will serve as co-leader of the Corporate Finance & Restructuring segment’s TMT industry practice alongside Luke Schaeffer.

Carlyn Taylor, global co-leader of the Corporate Finance & Restructuring segment at FTI Consulting and the founder of the firm’s TMT industry practice, stated, “The addition of the Delta Partners team strengthens our strategy consulting offering and significantly bolsters our business transformation and transactions capabilities, enabling us to establish FTI Consulting as a truly global TMT advisory firm.”

She further added, “Delta Partners brings a wealth of new corporate clients to FTI Consulting, and together our practices will achieve a formidable scale to serve any TMT client in the world with exceptional industry expertise and a wide range of services.”

Given the increasing rate of operational challenges and opportunities, every TMT company is focusing on innovative problem-solving and diverse skill sets. The deal, thus, seems to be a strategic move on FTI Consulting’s part to strengthen its foothold in the TMT business on a global scale.

Zacks Rank and Stocks to Consider

FTI Consulting currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the broader Zacks Business Services sector are DocuSign, Inc. (DOCU - Free Report) , SPS Commerce (SPSC - Free Report) and SailPoint Technologies Holdings, Inc. (SAIL - Free Report) . All the stocks carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The long-term expected earnings per share (three to five years) growth rate for DocuSign, SPS Commerce and SailPoint is 46.8%, 15% and 15%, respectively.

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