Grant Thornton Advisors is attempting to reshape the setting of U.S. professional services through a proposed $5 billion acquisition of CBIZ. The all-cash deal, announced Wednesday, aims to boost Grant Thornton’s standing among tax and advisory firms. This transaction follows an investment by New Mountain Capital in May 2024, which provided the capital necessary to expand the firm’s reach. The agreement is specifically designed to raise Grant Thornton Advisors to become the fifth-largest professional services, tax and advisory firm in the United States, marking a significant milestone in the competitive setting.
Global footprint and revenue
If approved, the merger creates a massive organization. The combined company would operate across more than 20 countries and territories. Its annual revenue would approach $7.5 billion, and it would employ over 34,500 people globally. The lights on the Grant Thornton office in City Quay, Dublin, were bright last night, but the deal is even brighter. The office building in Dublin glowed under night lights, but the agreement is brighter. The proposed tie-up will combine Grant Thornton Advisor’s multinational platform capabilities with CBIZ’s “deep relationships across the U.S.” Officials said this union offers clients the benefits of cross-border scale and broad multidisciplinary capabilities. By integrating these distinct operational strengths, the new entity aims to leverage a vast global network to serve domestic needs effectively.
The strategic alignment focuses on delivering AI-enabled leading-edge technology solutions. This technology is intended to help clients handle an increasingly complex and rapidly evolving business environment. Officials noted that the union provides the specific benefits of cross-border scale and broad multidisciplinary capabilities, ensuring that the combined entity can address diverse client needs more comprehensively than either firm could individually.
Strategic integration and leadership
Leaders from both firms emphasized the complementary nature of the partnership. The goal is to provide clients with AI-enabled leading-edge technology solutions. “Together, we’ll bring the quality, scope and capabilities clients need to handle an increasingly complex and rapidly evolving business environment,” Grant Thornton CEO Jim Peko said in the release.
Related: Pentair targets growth with Taco acquisition
CBIZ President and CEO Jerry Grisko described the combination as historic. He noted that joining forces allows CBIZ to accelerate the realization of its growth vision. “CBIZ has grown rapidly over many years to become a leading professional services provider,” Grisko said. The release further highlighted that the union is a “historic combination with a complementary cultural and strategic fit,” suggesting that the two companies’ internal cultures align well to support this massive shift in operations.
Financial terms and timeline
CBIZ shareholders will receive $55 in cash for every share of common stock they own. Upon completion, CBIZ will become a wholly-owned subsidiary, and its stock will cease trading on the New York Stock Exchange. Transaction experts expect the deal to finalize in the fourth quarter, subject to customary closing conditions and regulatory approvals.
New Mountain Capital, which led the May 2024 investment in Grant Thornton Advisors, is expected to inject more equity to support the deal. Once the transaction closes, Grant Thornton plans to separate CBIZ’s benefits and insurance services segment into a new stand-alone entity backed by New Mountain Capital. This strategic separation ensures that the benefits and insurance services maintain their identity while still benefiting from the financial backing of the larger investment firm.
