Embattled consulting giant PwC Australia has offloaded its government business to private equity group Allegro Funds for $1 as it seeks to move on from its damaging tax leaks scandal.
The sale of the company’s public sector advisory business, which includes all its work for federal and state government departments including healthcare and education, became effective on July 1 after PwC and Allegro signed off on the terms of the deal, the private equity fund said in an emailed statement on Tuesday.
The new company, to be named Scyne Advisory, will be fully independent of the scandal-rocked consulting firm and take on 1750 PwC employees. The private equity fund said it expected to invest more than $100 million to support the business in the future.
Public work represented about 20 per cent of PwC’s revenue for the 2023 financial year.
To boost corporate governance standards, Scyne will have an independent board of directors. Former Federal Court judge Andrew Greenwood is joining as non-executive director and candidates for an independent chair and more non-executive directors are still being interviewed, the statement said.
More to come
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Source: Thanks smh.com