Allegro purchase of PwC government advisory arm on track

Allegro and PwC have a binding term sheet in place for the transaction.

Further signs are emerging that Allegro’s acquisition of PwC’s government advisory arm is going to plan.

But the latest developments suggest up to 20 PwC partners who worked in government advisory could be hunting for new jobs.

DataRoom has learned that PwC partners who worked for the unit – which is being bought by Allegro for $1 – were asked on Wednesday whether they wanted to be part of the new venture.

Apparently, about 115 of the 135 do, which is more than the 80 per cent bar Allegro had hoped for to execute the transaction.

The 20 others may be keen to work elsewhere, remaining with the accounting firm, retiring, or part of the government tax leak affair.

The government’s audit business will remain with PwC and will not be part of the new firm, to be called Scyne Advisory.

Allegro and PwC have a binding term sheet in place for the transaction.

This envisages the private equity firm owning 75 per cent of the new firm.

It earlier said it would inject $100m into the business for employment and operating costs.

Richard Gwilym will lead Scyne Advisory until a final chief executive selection is made.

David Sacks leads the firm’s so-called geographies group, while Joshua Chalmers has responsibility for risk services, and Emily Prior will manage strategy.

Kate Evans heads communications while Jamie Briggs is in charge of the South Australian operation.

Allegro had targeted the end of August to finalise the transaction.