The Australian Member Firms of leading accounting and business advisory networks, BDO International and Horwath International, have announced the forthcoming merger of their respective practices across Australia early in the New Year. The newly combined firm will be the exclusive Australian Member Firm of the BDO International network.

Although negotiations are still ongoing, it is anticipated that the merger will bring the newly combined firm to around 140 partners and approximately 1,200 staff, with an estimated turnover of about $180 million for the full 2007 year - this will place the new firm in a unique position in Australia.

The combined firm will have the size and scope that puts it into a space of its own - neither Big 4, nor mid-tier. Both firms bring different but complementary strengths, further enhancing the capability and capacity available to their clients. The cultures of both firms are highly compatible, with similar client service delivery models that focus on value-based partner-led delivery.

According to the respective networks' Australian National Chairmen, Russell Heywood-Smith of BDO and Vin Brown of Horwath, the new firm will fill a service gap, or void, in the market, providing a distinctively different choice for those seeking corporate and business advisory services.

Mr Heywood-Smith states that "this is not just another merger. It creates a distinctively different option for those seeking corporate and business advisory services and is an exciting time for BDO partners and staff, and for our clients. The synergies that exist between our firms, in terms of culture, capabilities and service philosophies, will ensure a smooth transition and BDO in Australia will be strengthened as a result".

Mr Brown added "The clients and contacts of both firms will benefit greatly from the additional resources and increased depth of expertise that we will share. As the exclusive Australian Member Firm of the BDO International network the newly combined firm represents an alliance that both firms will no doubt benefit from. We see this as a perfect time to bring our two firms together to ensure that clients are provided with as much choice as possible in a shrinking professional services market".

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Note to editors:
BDO International is a world wide network of public accounting firms, called BDO Member Firms, serving international clients. Each BDO Member Firm is an independent legal entity in its own country. The combined total fee income of all BDO Member Firms was US$ 3.911 billion in 2006. The global network has 621 offices in 107 countries, and almost 30,000 partners and staff in the Member Firms provide business advisory services throughout the world.

For further information please contact:
BDO Global Coordination Office, Brussels, Belgium.
Tel: (+32 2) 778 0130
Fax: (+32 2) 778 0143
e-mail: bdoglobal@bdoglobal.com