EquaTerra, TPI, Merger, Veritage, Commentary

[SharedXpertise Commentary] EquaTerra and TPI sign merger agreement, form 'Veritage'

13 Feb 2006 | (News) | SharedXpertise Editor Commentary

(For the SharedXpertise take on the merger, please see below)

EquaTerra and TPI, Inc. last week announced the signing of their merger agreement. Closing is anticipated later in February, 2006.

The firm has selected a new name that embodies the values, objectivity and heritage of both firms - Veritage. The name (rhyming with heritage) symbolizes the integrity and the expertise each firm has delivered to their clients over the years.

Ed Glotzbach, CEO of the new firm post-closing commented, "Veritage will provide clients deeper market knowledge and broader functional expertise with greater global scale and innovation than either company could provide on its own."

In addition to Ed Glotzbach as CEO, Veritage will also be led by President and COO, Mark Toon.

With almost 600 employees based around the globe, the firm will provide strategic advice and implementation assistance for clients as they transform their business functions in key areas such as outsourcing, shared services, insourcing and captive center implementation.

---

SharedXpertise Commentary

We were a bit surprised by the news at first as 3 former TPI employees, including new President and COO Mark Toon, founded EquaTerra. Evidently, bad feelings did not get in the way of creating a top-notch sourcing advising firm that should raise the bar within the market.

The combination of two of the largest and most experienced advisory firms on business transformation makes sense for a number of reasons:

Client need fulfillment
Executives are demanding a greater breadth of advisory services, and seeking long-term and sustainable internal service delivery improvements. In response to this increasing demand for cross-enterprise advisory services, Veritage will be able to advise clients in all business processes, in all industries, in all geographies with unequaled depth of expertise

Opportunity to leverage the best of both firms
Together, the companies are positioned and prepared to drive greater innovation in the global outsourcing industry to help all market participants achieve their objectives of efficiency, cost-effectiveness, and enhanced competitive positioning.

Industry leadership
The companies felt it was time to set aside their difference’s and unite under common goals. Veritage is now the leading global advisory firm across all business support functions.

Enhanced value
The merger delivers significant enhanced value to clients, employees, shareholders and the industry as a whole.

Market Forces

We see this merger as a win for the new company and the market for services. But what about the competition? They win too. One of the two serious competitors in this market has been taken out and many potential clients will not necessarily welcome dealing with the 'giant' of the business; but rather go with smaller, potentially more focused, flexible, service-intensive advisors.

Who's out? Potentially the Big 5 firms who face an even larger challenge in their move into the sourcing advisory space. Their heritage of providing their clients with over-arching corporate strategy with voluminous documentation opposes the need for nimbleness to effectively operate in this space. Additionally, they do not yet have the infrastructure or knowledge to provide the necessary kinds of specialized sourcing advice. When ready, they will face a formidable competitor in Veritage. the likely entrenched market-leader.

This is the start of many mergers and close partnerships to come in an industry that is starting to mature. The name 'Veritage' is significant in that it connotes an established history-rich firm -- a big 5 kind of firm...

Author: Commentary, SharedXpertise Editor
More articles by this author... Related Content: