FTI Consulting Acquires Brower, Kriz & Stynchcomb and G3 Consulting
Acquisitions Extend FTI's Construction Industry Dispute, Litigation and Investigations Services and Ringtail's Presence in UK Litigation Services Market
Baltimore, MD - October 11, 2006
FTI Consulting, Inc. (NYSE:FCN), the leading global consulting firm to organizations confronting the critical legal, financial and reputational issues that shape their futures, today announced that it has acquired Brower, Kriz & Stynchcomb (“BKS”) and G3 Consulting (“G3”).
Jack Dunn, FTI's president and chief executive officer, commented: “We are excited to welcome BKS and G3 to FTI, and these purchases are in keeping with our stated acquisition strategy. These are excellent companies that expand our capabilities to take advantage of related market opportunities. BKS brings unparalleled experience in the domestic and international construction industry to our Forensic and Litigation Consulting segment. G3's overall experience leveraging technology on behalf of clients not only further extends our capabilities in the UK, but also fits well with the needs of our newly-acquired Financial Dynamics client base.”
Brower, Kriz & Stynchcomb (“BKS”)
BKS is a privately-held, 31-person construction consulting firm based in Maryland specializing in critical path method schedule development, technical schedule review and progress evaluation, and will be an integral part of FTI's ability to provide a comprehensive construction industry dispute, litigation and investigations service. The purchase price for the acquisition was approximately $11.5 million, payable through a combination of cash and restricted shares of FTI's common stock, plus the opportunity for future contingent consideration based on specified financial objectives over the next five years. BKS revenues for 2006 are anticipated to be approximately $8.1 million. The three key BKS principals, Barry Brower, Jarad Kriz and Paul Stynchcomb have joined FTI and have signed five year employment agreements.
Barry Brower said: “Joining with FTI is a major forward step for us. It offers us a broader range of client opportunities as well as providing FTI's clients in the construction industry with deep service capability.”
G3 Consulting (“G3”)
Privately-held G3 Consulting (“G3”) is a UK-based, six-person organization that delivers technology and business consulting to UK clients facing corporate litigation, electronic disclosure and public inquiries, that FTI acquired for approximately $2.5 million through a combination of cash and restricted shares of FTI's common stock. For the past six years G3 has served as the primary direct UK supplier of FTI's Ringtail Legal products, as well as provided associated Application Service Provider (“ASP”) and professional and consulting services. G3 also brings extensive experience in the area of electronic disclosure, having advised the UK's top law firms and corporate legal departments on how best to increase the speed, efficiency and quality of their electronic review using web based tools.
Andrew Kennell, a Director of G3, said: “G3 has enjoyed a long and productive relationship with FTI Ringtail. Joining forces with FTI's team is the natural progression to being able to provide a wider range of services and support to our clients.”
About FTI Consulting
FTI is a leading global firm that organizations rely on for advice and solutions in the areas of forensic analysis, investigation, economic analysis, restructuring, due diligence, strategic communication, financial communication and technology when confronting the critical legal, financial and reputational issues that shape their futures.
FTI delivers solutions every day through its network of nearly 2,000 professionals in offices in every major business center in the world.
Safe Harbor Statement
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. Further, preliminary results are subject to normal year-end adjustments. 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, retention of staff and clients and other risks described in the company's 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.
Jack Dunn, President & CEO of FTI Consulting, Inc., 410.224.1483
Gordon McCoun, Financial Dynamics, 212.850.5681
Evan Goetz, Financial Dynamics, 212.850.5639