The $3.5bn (€3.6bn) acquisition by IBM, the world's largest IT company, of the consulting division of PricewaterhouseCoopers (PwC), the world's largest accounting firm, is likely to prompt consolidation among European rivals, according to analysts.

The deal, which means PwC Consulting drops its plans for an initial public offering, will provoke other buyers to consider mid-sized targets, the experts said. It comes less than two months after Atos Origin, the French IT company, bought the UK and Dutch consulting businesses of accounting firm KPMG for €657m, and more deals could follow.