PwC spin-off Scyne to officially begin operating from November 13
The sale of PwC Australia’s public consulting arm to private equity investor Allegro Funds has been approved by the Foreign Investment Review Board, clearing the way for the new company to officially begin operations from November 13.
The unconditional approval of Scyne Advisory announced on Monday was the final hurdle for the company after the powerful Finance Department said the new firm could take on the federal government contracts of its predecessor and accept new Commonwealth work in mid-October.
Allegro Funds co-founder Adrian Loader. James Brickwood
“We’re pleased to receive the green light from the Foreign Investment Review Board for the transaction, and will now accelerate the final steps to completion,” Allegro Funds co-founder Adrian Loader said.
“Scyne Advisory is ready to go – we have strong governance in place, and we are set up well for a clean transition of clients and employees.”
PwC sold its public sector consulting arm to Allegro in July for $1, after the big four firm was effectively cut off from winning new federal government work when the extent of its tax leaks scandal became public in May.
More than 100 PwC partners and about 1300 PwC staff moved across to Scyne. In late October, the firms announced that 78 staff who had been scheduled to move across to Scyne were no longer able to make the jump. They were sent back to PwC and are now urgently seeking other roles within PwC.
Once the deal is finalised on Wednesday, Scyne will be fully independent of PwC Australia and owned by Allegro and Scyne staff.
Scyne has been structured as a company rather than a partnership, which is the form that the big four consultancy firms operate under. A former federal court judge, Andrew Greenwood, has investigated
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