Sooner or later this economy affects companies who find it will be better to consolidate & merge rather than go it alone. The announcement this week that Watson Wyatt and Towers Perrin will merge is one of those signs.
These two compete as professional management & HR benefit firms. They provide consulting and related services to firms around the globe. Both are about the same size – just over $ 1.5 billion. As companies tighten their belt, they pull back for spending on some of these services. Companies in this space find themselves in a no growth or slight downturn of revenues. Probably a good move to combine and make the overall business more efficient.