BearingPoint Fire Sale Begins...

It was reported this morning that BearingPoint will be selling its public sector business (its most solid business as of now) to Deloitte Consulting for $350 million; and its commercial sector business to PwC for $25 million.

According to a company statement, "BearingPoint also is in late-stage negotiations with its local management teams to sell its European and Latin America practices." We'll see what happens here... But, this would mean the complete removal of BearingPoint from the IT services market.

While its SAP practice has been hemorrhaging business and people during the last few months in particular, it seems that PwC will regain some footing once again in the U.S. SAP Consulting Services market as a result of this purchase, while Deloitte will capture a portion of that business focused on the public sector. This may mark the return (on a much smaller scale) of PwC in the IT services market, after selling PwC Consulting to IBM in 2002.