PwC has signed a conditional merger agreement with US consultancy firm Booz & Company, widely regarded as the world's oldest management consultancy, in a move which will strengthen its global advisory practice.

The transaction is conditional on approval by Booz & Company partners and regulatory consent, and is likely to be finalised by the end of the year. The terms of the deal have not been disclosed.

Dennis Nally, chairman of PricewaterhouseCoopers International, said: 'We believe this proposed combination of Booz & Company with our existing assurance, advisory and tax capabilities would create a stand-out professional services organisation that delivers first class quality services to a broad range of stakeholders. In particular, it would give CEOs the opportunity to work with a global consulting team that could provide services from strategy development right through to execution.'

Booz & Co, founded in 1914, has been involved in numerous high profile deals, including the merger of the National and American football leagues in the 1970s and the creation of Deutsche Telekom after the reunification of Germany. The firm split from Booz Allen Hamilton, which focuses on US government consultancy work, in 2008. It has around 3,000 employees and 130 partners worldwide, including 15 partners in the UK, and its revenues are around $1bn (£62m).

Cesare Mainardi, CEO of Booz & Company, said: 'Our goal is to help clients identify and build the differentiating capabilities they need to win. This potential combination would not only deliver on this innovative value proposition but would also help reinvent management consulting for the next century.'

PwC sold its consulting arm to IBM in 2002, and since 2009 has been making consulting acquisitions, including Paragon Consulting Group; the commercial services consulting arm of BearingPoint; and smaller consulting firms in digital, social media and environmental areas.