Charles River Associates Completes Acquisition of The Tilden Group, LLC, Adds World-Renowned Economists
BOSTON, December 16, 1998 Charles River Associates Incorporated (Nasdaq: CRAI), a leading provider of sophisticated economic and financial analysis, today announced it has completed its acquisition of The Tilden Group, LLC, a privately held consulting firm founded by University of California-Berkeley professors Michael Katz and Carl Shapiro. The Tilden Group conducts economic analyses for litigation, public policy design, and business strategy development.
Under terms of the agreement, CRA acquires the Oakland, California-based Tilden Group for $9.6 million in a combination of cash and stock. Shareholders of The Tilden Group will receive 95,379 shares of newly issued CRA common stock. Katz and Shapiro have signed exclusive consulting agreements with CRA and join the firm as senior consultants. Also joining CRA will be 10 Tilden staff members.
"The acquisition of The Tilden Group represents a significant step in executing CRAs growth strategy by adding businesses that complement our expertise," said CRA President and Chief Executive Officer James C. Burrows. "The natural synergies between the two firms will enhance CRAs business opportunities, particularly in telecommunications, intellectual property, business strategy, and antitrust litigation, areas in which Michael Katz and Carl Shapiro are two of the worlds foremost experts.
"The addition strengthens our high-level economic and management consulting services to law firms, corporations, and regulatory agencies," Burrows continued. "It also increases our already strong presence in California. Earlier this year, CRA opened offices in Los Angeles and Toronto, adding to our existing operations in Boston, Washington, DC, and Palo Alto."
Katz was Chief Economist at the Federal Communications Commission from 1994 to 1996. He is the Edward J. and Mollie Arnold Professor of Business Administration at the Haas School of Business at the University of California-Berkeley. Shapiro served as Deputy Assistant Attorney General for Economics in the Antitrust Division of the Department of Justice from 1995 to 1996. He is the Transamerica Professor of Business Strategy at the Haas School of Business at the University of California-Berkeley.
CRA is a leading provider of sophisticated economic and financial analysis, expert testimony and litigation support, and business consulting. The firms areas of expertise include antitrust, mergers and acquisitions, policy impact assessment, corporate finance, strategy and business operations, and regulatory economics. CRA has advised legal and corporate clients, government agencies, and other organizations in thousands of engagements since its founding in 1965.
Statements in this press release concerning the future business, operating results, and financial condition of the Company are "forward-looking" statements as defined in the Private Securities Litigation Reform Act of 1995. Such statements are based upon managements current expectations and are subject to a number of factors and uncertainties. Information contained in these forward-looking statements is inherently uncertain and actual performance and results may differ materially due to many important factors. Such factors that could cause actual results to differ materially from any forward-looking statements made by the Company include, among others, dependence on key personnel, attracting and retaining qualified consultants, dependence on outside experts, intense competition, and professional liability. Further information on these and other potential factors that could affect the Companys financial results are included in the Companys initial public offering prospectus, dated April 23, 1998.