NEW YORK (CNN/Money) - Ernst & Young scooped up a third Andersen unit Thursday, with the Australian member firm signing a memorandum of understanding to join Ernst.

The combined firm, to be known as Ernst & Young Australia, will have annual revenue of more than $371 million and become that country's second-largest professional services firm.

However, the integration of the two firms is not final and Andersen partners still must vote on it, Ernst spokeswoman Samantha Thomson said. The transaction also includes Andersen's legal business in that country, Thomson said.

Ernst & Young expects to close the deal on May 15, subject to due diligence, partner votes and regulatory approval, the company said in a statement.

Andersen Australia's operations abandoned negotiations with KPMG Monday due to a conflict. Both Ernst and Deloitte & Touche had been in negotiations with the unit and Deloitte apparently dropping out.

Ernst & Young Global CEO Bill Kimsey said earlier this week that his accounting firm was in talks with various Andersen partnerships around the world.

So far, Ernst has scored three Andersen partnerships. Last week, Andersen's New Zealand and Russia operations also joined Ernst & Young. An Andersen practice in Hong Kong agreed on March 22 to join PricewaterhouseCoopers.

The defection of the Australian unit is yet another blow to Andersen's proposed deal to merge its non-U.S. firms with KPMG International.

"Our clients and people have been extremely loyal to our firm in recent weeks and we thank them for that," said Gerry Hounsell, CEO of Andersen Australia. "Through this integration with Ernst & Young, we can now move forward as part of a larger organization."