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PwC China plans to spin off cyber security arm

Partner-led buyout would improve liquidity and mark strategic pivot away from consulting

PwC China plans to spin off its Dark Lab cyber security arm in a private buyout deal, as the Big Four firm seeks to improve liquidity and navigate the financial fallout from its audit of failed Chinese property developer Evergrande.

PwC China’s board and Dark Lab’s management have been evaluating bids in recent weeks, said three people familiar with the process. There is no certainty of a deal, but the rare partner-led spin-off now being favoured could generate about HK$1bn-HK$2bn (US$128mn-US$256mn), with a final price still to be negotiated, said two of the people.

The business unit, with more than 200 staff, offers cyber security consulting services regionally and globally, including simulations of hacking scenarios, according to its website.  

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