News leak at Cisco.... reported this morning in the Mercury News San Jose.
OG
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mercurycenter.com
Posted at 11:18 a.m. PDT Sunday, August 8, 1999
Cisco gives accounting Co. $1B
boost
NEW YORK (AP) -- Cisco Systems, a leading maker of computer networking
equipment, has agreed to invest $1 billion in KPMG LLP to aid the
accounting and consulting firm's expansion onto the Internet, a published
report said.
San Jose-Calif.-based Cisco was expected to announce the agreement
Monday, The New York Times reported Sunday.
Under the terms of the deal, KPMG will use the money to hire 4,000
engineers and service professionals to develop and deliver Internet-based data, voice and video services to its
clients, the newspaper said.
Over the next 18 months, KPMG will build six technology centers -- four in the United States and two abroad, the
Times reported.
In return, Cisco will own a stake of less than 20 percent in KPMG, the U.S. unit of privately-held KPMG
International, No. 3 among the big five accounting firms.
Executives from both companies said they believe there is a winner-takes-all prize for companies that win the race
to incorporate the Internet into their business strategy.
``There is a realization that you can be out of business in three years,' John Chambers, Cisco's chief executive told
the Times. ``Whoever moves quickly first are those who will benefit over the next 10 years.'
Stephen Butler, KPMG chairman and chief executive officer, said the New York-based firm has been courting
potential technology partners in recent months. One result was a joint venture announced in June with Qwest
Communications International to provide order processing.
(PROFILE (CO:Cisco Systems; TS:CSCO; IG:CPR;) (CO:Qwest Communications International Inc; TS:QWST;) ) |
