Feb 6, 2006

EDS sells AT Kearney's Exec Search business

I wonder why this did not get too much of news coverage amongst the news of AT Kearney turning private.

EDS said the deal, financial terms for which have not been disclosed, was a separate transaction from the expected management buyout of A.T. Kearney, which EDS announced last year. The investment group was led by Edward Kelley, who will serve as CEO of the firm. Most of A.T. Kearney Executive Search's senior management team took part in the sale of the business and are now among the firm's new owners.

None of the partners wanted to stay in the Exec Search business? Hmm, I wonder why... A bit of Googling shows that Edward Kelley is a a former Korn/Ferry International executive.

I found this quote on the AT Kearney website intriguing. Is this finding research based?

"When your principal strategic assets are your people, private ownership is the better model," said Ashish Nanda, associate professor at Harvard Business School. "It has the advantage of binding together capable professionals into a shared organization, in which they each have a financial stake, which in turn delivers genuine commitment to produce results."