Business and IT consulting firm Cap Gemini Ernst & Young has sold its New Zealand division to three senior staff for an undisclosed sum.
The new company, which came into being on Monday under the name CGNZ Ltd, will be managed by former Cap Gemini Ernst & Young vice presidents Paul Cook, Alan Sinclair and David Stewart.
Cook and Stewart have become directors of the new operation while Sinclair has taken up the chief executive's post.
The new company has signed an affiliation agreement with Cap Gemini Ernst & Young entitling it to the resources of the global consulting giant, says Cook.
"We have a strong agreement which gives us full access to its information, methodology and approaches", he says.
He denies the move is an attempt by CGE&Y to cut ties with the New Zealand market, saying the buy-out was driven by a need for greater flexibility to meet the particular requirements of the market.
"Client expectations are high and we are better equipped to deal with local conditions as a local organisation,” says Cook. "This offers us the best of both worlds because we have full affiliate status."
He says the sale, which follows similar moves to Cap Gemini Ernst & Young's operations in Japan and South Africa, has prompted a handful of redundancies and a new recruitment drive beginning in the next few weeks.
The company will retain its offices in Auckland and Wellington.
"We have a tremendous order book going forward and what we are looking for are ways to leverage this unique position in the market,” Cook says.