Boston-based consulting firm Keane Inc is to acquire Chicago- based Bricker & Associates Inc, a privately-held operations improvement consulting firm, in a stock swap. The transaction, which is valued at $110m, will be accounted for as a pooling of interests and is expected to close by early June, subject to regulatory approvals. Keane will issue approximately 2 million shares of its common stock in exchange for all of the outstanding shares and options of Bricker. The actual number of shares will be determined based on the average price of Keane’s stock prior to closing. Keane figures the purchase will be immediately accretive to its bottom line. Keane wants the purchase to help it capture significant follow-on business, such as application development and outsourcing projects. It says Bricker’s engagements typically result in $10m to $50m in follow-on technology initiatives, most of which Keane can deliver on. Certain members of Bricker’s senior management team will most likely assume management positions within Keane. Keane says Bricker’s been growing at a rate of 44% per year. It had 1997 revenue of $15m and first-quarter 1998 revenue of $5.8m.
