Guidehouse acquires public sector practice of Grant Thornton US

23 August 2022 Consulting.us 3 min. read

Guidehouse, a Tysons Corner, VA-based management consultancy and a portfolio company of Veritas Capital, has acquired Grant Thornton US’ public sector practice.

The move continues Guidehouse’s steady growth trajectory. The consultancy’s journey started in 2018 when Veritas Capital bought the public sector practice of PwC US. Veritas in 2019 bolted on management consultancy Navigant to the rebranded Guidehouse, adding a significant global footprint and capabilities in serving heavily regulated commercial industries.

In 2021, Guidehouse added IT consultancy Dovel, expanding its health technology capabilities. Guidehouse currently has the second-largest healthcare consulting practice in the US.

The consultancy has more than 13,000 professionals in 50+ locations globally delivering a range of advisory, consulting, outsourcing, and digital services.

Guidehouse acquires public sector practice of Grant Thornton US

“This transaction aligns to our strategy to expand expertise and capabilities in support of our clients’ most pressing challenges,” said Scott McIntyre, CEO of Guidehouse. “With this strategic combination, we anticipate experiencing opportunities for both significant growth and advancement for our colleagues.”

Grant Thornton’s public sector practice has more than 480 employees in the Washington, DC area and in other US cities, according to LinkedIn. The practice provides federal, state, and local governments with solutions in finance, human-capital management, information technology, data analytics, and performance management.

The practice last year won a $350-million consulting contract with the TSA.

“The divestiture of our Public Sector Advisory practice is well-aligned with our strategy and will enhance our value to clients by sharpening the firm’s focus on our integrated offerings across Audit, Tax, and Advisory services, where we see significant growth opportunities,” said Seth Siegel, CEO at Grant Thornton. “Additionally, we will further enhance our capital position, strengthen the firm’s quality-focused market position, and create compelling opportunities for our colleagues.”

The transaction, for which financial terms were not disclosed, is expected to close in the second half of 2022. Law firms Milbank and Covington & Burling are acting as legal counsel to Guidehouse and Veritas Capital. Deutsche Bank Securities is acting as exclusive financial advisor to Grant Thornton and law firms Morrison & Foerster and Akerman are acting as legal counsel.

“We are excited to continue to support the Guidehouse team as the firm welcomes the Grant Thornton Public Sector Advisory team, driving growth and delivering critical capabilities to clients together,” said Ramzi Musallam, CEO and managing partner of Veritas.

Based in New York, Veritas invests in companies operating at the intersection of technology and government. The firm last year bought government services firm Perspecta for $7.1 billion and Northrop Grumman’s federal IT and mission support business for $3.4 billion.