Grant Thornton Advisors will acquire CBIZ Inc. for $5 billion in cash to expand its U.S. accounting reach [1].
The deal represents a significant consolidation in the professional services sector, positioning the combined entity as a dominant player in the American tax and advisory market.
Grant Thornton Advisors, the U.S. arm of Grant Thornton International, announced the agreement on Wednesday, July 29, 2024 [1]. The transaction will make the combined firm the fifth-largest professional services, tax, and advisory provider in the United States [2].
Following the announcement, shares of CBIZ Inc. rose approximately 17 percent [3]. A Grant Thornton spokesperson said the firm officially inked a definitive agreement to acquire the entire stake of CBIZ at a price of $55 per share [4]. This price represents a 17 percent premium over the latest closing price [4].
Grant Thornton said the purchase supports its growth strategy by increasing its presence across the U.S. accounting market [1]. The acquisition is supported by New Mountain Capital [2].
"The acquisition will significantly expand Grant Thornton's presence in the US accounting market, creating the fifth-largest provider in the country," a Grant Thornton CEO said in a statement to Reuters [1].
“Grant Thornton Advisors will acquire CBIZ Inc. for $5 billion in cash”
This acquisition signals a trend of aggressive scaling among mid-tier accounting and advisory firms to better compete with the 'Big Four' global networks. By absorbing CBIZ, Grant Thornton Advisors gains immediate scale and market share, potentially altering the competitive landscape for corporate tax and auditing services in the U.S.
