Grant Thornton Advisors, CBIZ agree to combine in $5B deal

Dive Brief:

Grant Thornton Advisors is looking to boost its position in the U.S. accounting, tax and advisory services market through an agreement to acquire industry peer CBIZ.
The all-cash transaction announced Wednesday — which is worth $5 billion and subject to closing conditions — would result in a combined company with a footprint that spans more than 20 countries and territories, generates nearly $7.5 billion in revenue and employs more than 34,500 professionals across the globe, according to a press release.
“Together, we'll bring the quality, scope and capabilities clients need to navigate an increasingly complex and rapidly evolving business environment,” Grant Thornton Advisors CEO Jim Peko said in the release.

Dive Insight:

The deal would allow Grant Thornton Advisors to become the fifth-largest professional services, tax and advisory firm in the U.S., the company said.

The proposed tie-up will combine Grant Thornton Advisor’s multinational platform capabilities with CBIZ’s “deep relationships across the U.S., offering clients the benefits of cross-border scale, broad multidisciplinary capabilities and AI-enabled leading-edge technology solutions,” according to the release.

“This is a historic combination with a complementary cultural and strategic fit,” CBIZ President and CEO Jerry Grisko said in the release. “CBIZ has grown rapidly over many years to become a leading professional services provider. Joining Grant Thornton Advisors accelerates the realization of that vision.”

The transaction is expected to be completed in the fourth quarter, subject to customary closing conditions, including approval by CBIZ shareholders and receipt of required regulatory approvals.

Under the terms of the agreement, CBIZ shareholders will receive $55 in cash for each share of CBIZ common stock they own. Upon completion of the transaction, CBIZ will become wholly-owned by Grant Thornton Advisors, and CBIZ common stock will cease to trade and no longer be listed on the New York Stock Exchange.

New Mountain Capital, which led a May 2024 investment in Grant Thornton Advisors, is expected to invest incremental equity to support the deal.

Once the transaction is closed, Grant Thornton Advisors plans to separate CBIZ’s benefits and insurance services segment into a new stand-alone entity backed by New Mountain Capital, the release said.