Resources Connection To Acquire Ernst & Young’s ETM Subsidiary In The Netherlands
Resources Connection To Acquire Ernst & Young’s ETM Subsidiary In The Netherlands
Resources Connection To Acquire Ernst & Young’s ETM Subsidiary In The Netherlands
Costa Mesa, CA May 21, 2003 -- Resources Connection, Inc. (NASDAQ: RECN), an international professional services firm, announced today that they have signed a non-binding memorandum of understanding with the intention to acquire the shares of Ernst & Young’s subsidiary, Executive Temporary Management BV (“ETM”) in the Netherlands. ETM is a market leader in the interim management industry in the Netherlands. Pursuant to the terms of the proposed transaction, Resources Connection intends to operate out of ETM’s six offices in the Netherlands. ETM intends to adopt the Resources Connection brand name upon completion of the transaction and will continue to be led by its current management team. Financial terms will be disclosed upon signing a definitive agreement, and the company is working to complete this transaction by June 30, 2003. The transaction is subject to the execution of a definitive agreement between the parties and there can be no assurance that such an agreement will be reached. Resources Connection does not intend to report further information in connection with the negotiations between the parties until such time that either the transaction is consummated or abandoned.
The proposed acquisition will allow Resources Connection to immediately offer its full suite of services, including highly experienced finance & accounting, human resources, information technology, and internal audit project professionals to companies in the Netherlands, where interim executive services are well established. It will also lay a foundation for services throughout the European continent by bolstering Resources Connection’s current offices in the United Kingdom.
“With the opportunity to acquire ETM, Resources Connection hopes to continue building an independent international alternative for professional level services that the big audit firms may be restricted to provide,” said Donald B. Murray, Chief Executive Officer of Resources Connection. “Both companies share a similar strategic vision and our corporate goals for the professional services market are well-aligned. Establishing a significant practice in the Netherlands will enable us to continue to develop business with multinational clients on the European continent.”
“Joining with Resources Connection gives ETM the opportunity to provide our professional services on management and finance in the Netherlands and Europe without constraints related to auditors’ independency guidelines,” said Leo Witvliet, Chief Executive Officer of ETM. “A joint practice with Resources Connection provides us opportunities to build solid and innovative partnerships with our multinational clients.”
“We are very pleased this preliminary agreement with Resources Connection can offer ETM a better point of departure for future growth. ETM is well positioned to take advantage of the opportunities its markets offer. The company, its management and its employees should get all the space they need to do so and we believe Resources Connection can provide this,” said Jan den Hartog, Chairman of the Board of Ernst & Young.
ABOUT RESOURCES CONNECTION
Resources Connection, Inc. is an international professional services firm that provides accounting and finance, human resources, information technology, and internal audit on a project basis. Headquartered in Costa Mesa, California, the company operates from 50 US offices and five international offices. More information about the company is available at www.resourcesconnection.com. On March 20, 2003 Resources Connection reported US$143 million revenues for the 9 months ended February 28, 2003.
Resources Connection was founded in June 1996 by a team from Deloitte & Touché, and became independent in April 1999, following a management buyout. In December 2000, the company completed its initial public offering and listed on NASDAQ. The U.S. client portfolio boasts more than 30 of the Fortune 50 companies. The company was recently named to Forbes Best 200 Small Companies list.
ABOUT ERNST & YOUNG EXECUTIVE TEMPORARY MANAGEMENT
Ernst & Young Executive Temporary Management (ETM) provides interim management, project management and change management services in all functional disciplines (general management, finance and accounting, HRM, information communication & technology, marketing & communication, legal). Headquartered in Amsterdam/Maarssen, the Netherlands, the company operates from six Dutch offices. More information about the company is available at http://www.ey-im.nl/
Ernst & Young Executive Temporary Management started its interim management activities and temporary administrative services in 1989 embedded within Ernst & Young Consulting and Ernst & Young Accountancy. In 1995, the two entities merged, forming an autonomous enterprise owned by Ernst & Young. The company is a market leader in the Dutch interim management market with revenues of €39 million for the 9 months ending March 31, 2003.
ABOUT ERNST & YOUNG
Ernst & Young, a global leader in professional services, is committed to restoring the public’s trust in professional services firms and in the quality of financial reporting. Its 106,000 people in more than 140 countries around the globe pursue the highest levels of integrity, quality, and professionalism to provide clients with solutions based on financial, transactional, and risk-management knowledge in Ernst & Young's core services of audit, tax, and corporate finance. Ernst & Young practices also provide legal services in those parts of the world where permitted. Further information about Ernst & Young and its approach to a variety of business issues can be found at www.ey.com/perspectives. Ernst & Young refers to all the members of the global Ernst & Young organization.