FIRB approves sale of PwC’s Scyne Advisory to Allegro Funds

Allegro’s buyout of PwC’s former government consulting business Scyne Advisory should be complete and fully operational by November 13.

The Foreign Investment Review Board has signed off on PwC Australia’s sale of its government consulting arm to a group of partners and Allegro Funds, clearing the way for the deal.

The unconditional approval from FIRB allows PwC’s former government consulting operations to formally separate under a new name Scyne Advisory.

Almost 1400 staff will make the transition to the new business, which is set to be fully operational by November 13.

Scyne Advisory will be shut down for two days from Wednesday to allow for the migration of data and technical systems.

PwC agreed to sell its government consulting business to Allegro Funds in a $1 deal as it faced a loss of new work in the face of revelations the audit and consulting giant had misused confidential government tax briefings.

PwC’s former head of international tax, Peter Collins, was found to have misused confidential Treasury briefings regarding the introduction of new tax laws in Australia.

Treasury has already signed off on the sale of Scyne Advisory, with FIRB’s approval the last hurdle. Allegro Funds co-founder Adrian Louder said the private equity player was “pleased to receive the green light” on its purchase of Scyne Advisory.

“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,” he said.

FIRB’s approval may also allow Scyne Advisory to gain work from the Victorian, NSW, and Queensland governments, which have held off committing to new contracts without the sign-off.

Scyne Advisory can already tender for Commonwealth public service contracts after winning approval from the Department of Finance.

However, Scyne Advisory will be monitored for at least 12 months under conditions imposed by the department.

No decision has been made on whether to allow Scyne Advisory to assume PwC’s spot on the Management Advisory Services Head Agreement.

Scyne Advisory recently sent 78 staff back to PwC amid a drop off in new work and delays in securing FIRB’s approval.

Allegro Funds had originally targeted September 30 to complete the deal. Former PwC partners will own almost 25 per cent of Scyne Advisory, while the remaining 75 per cent will be held by Allegro Funds