Global
HR consultancy Hewitt has announced plans to buy HR outsourcing provider Exult
for around £380m – a deal that will create a company worth around £1.6bn in
joint annual revenue.
Hewitt
claims the deal, which is expected to close in September, will make it the only
organisation capable of offering total HR business process outsourcing services
– covering benefits, payroll and IT systems – with consulting services.
Dale
Gifford, chairman and chief executive officer of Hewitt, said: “We’ll be a
one-stop shop for all HR services, and can provide this on an integrated
basis.”
Jim
Madden, chief executive officer of Exult, added: “This strategic merger is a
testament to the fast-growing market for HR business process outsourcing.”
However,
one UK HR director raised fears that the deal will lead to reduced choice for
HR purchasers.
Sign up to our weekly round-up of HR news and guidance
Receive the Personnel Today Direct e-newsletter every Wednesday
“Just
as accountancy firms have become ever bigger, so too is the relentless march of
evermore dominant HR consulting firms,” said Mark Childs, group compensation
and benefits director at security firm Chubb.
