Grant Thornton Advisors and CBIZ Reach $5 Billion Merger Agreement
Grant Thornton Advisors and CBIZ announced a $5 billion all-cash merger agreement, expected to close in the fourth quarter. The combined company will operate in more than 20 countries and regions, with annual revenue of nearly $7.5 billion and over 34,500 employees, becoming the fifth-largest professional services, tax, and consulting firm in the United States.
Quick Overview
- Grant Thornton Advisors plans to enhance its position in the U.S. tax and consulting market through the acquisition of peer CBIZ.
- The all-cash deal announced Wednesday is valued at $5 billion and is subject to closing conditions. The combined company will operate in more than 20 countries and regions, with annual revenue of nearly $7.5 billion and over 34,500 employees worldwide.
- "Together, we will provide clients with the quality, scale, and capabilities needed to navigate an increasingly complex and rapidly changing business environment," said Jim Peko, CEO of Grant Thornton Advisors, in a press release.
In-Depth Insights
Grant Thornton Advisors stated that the transaction will make it the fifth-largest professional services, tax, and consulting firm in the United States.
The proposed merger combines Grant Thornton Advisors' multinational platform capabilities with CBIZ's deep client relationships in the U.S., providing clients with cross-border scale, broad multidisciplinary capabilities, and AI-driven leading technology solutions.
"This is a historic merger, with both parties highly complementary in culture and strategy," said Jerry Grisko, President and CEO of CBIZ, in a press release. "CBIZ has grown rapidly over the years to become a leading professional services provider. Joining Grant Thornton Advisors will accelerate the realization of this vision."
The transaction is expected to close in the fourth quarter, subject to customary closing conditions, including CBIZ shareholder approval and receipt of necessary regulatory clearances.
Under the terms of the agreement, CBIZ shareholders will receive $55.00 in cash for each share of common stock they hold. Upon completion of the transaction, CBIZ will become a wholly owned subsidiary of Grant Thornton Advisors, and its common stock will cease trading and no longer be listed on the New York Stock Exchange.
New Mountain Capital, which led an investment in Grant Thornton Advisors in May 2024, is expected to make an additional equity investment to support the transaction.
Upon completion of the transaction, Grant Thornton Advisors plans to spin off CBIZ's benefits and insurance services division into a standalone entity, supported by New Mountain Capital.