Barra offloads consulting ventures
28 March 2002 | 1047 views | 0
California-based risk management technology vendor Barra has disposed of its two consulting ventures, Barra RogersCasey and Barra Strategic Consulting Group.
Kamal Duggirala, chief executive officer of Barra, states: "This is the conclusion of a two-year process of sharpening our strategic focus by exiting all non-strategic venture businesses."
Barra RogersCasey, the company's pension fund consulting venture, has been sold to Chicago-based Capital Resource Advisors, for $14 million cash. Net proceeds are expected to be approximately $11 million, resulting in an estimated pre-tax gain on sale of between $7-$8 million.
Barra Strategic Consulting Group, which provided project-based management consulting to asset managers, has ceased operations. Barra expects to record a charge of approximately $1.5 million in connection with severance and related closure costs.
"We explored several alternatives for this business, including a sale or spin-off, but the deteriorating financial condition of this business made other options infeasible," explains Duggirala.