Grant Thornton Advisors to acquire CBIZ for $5bn to expand US presence

Grant Thornton Advisors has agreed to acquire CBIZ, a US-based professional services advisor, for $5bn (£3.75bn) in cash.

The deal will create what the companies describe as the fifth-largest professional services, tax and advisory provider in the US.

Under the terms of the agreement, CBIZ shareholders will receive $55 in cash for each share of CBIZ common stock.

New Mountain Capital, which led a May 2024 investment in Grant Thornton Advisors, will provide additional equity to fund the acquisition.

The deal is said to be the “largest of its kind” in more than 25 years.

The transaction will combine Grant Thornton Advisors’ multinational platform with CBIZ’s established client relationships across the US. The combination will expand cross-border scale and bring together a wider range of services across disciplines.

It is expected to strengthen AI-enabled services, the statement added.

It will also build on Grant Thornton Advisors’ $1bn investment in AI and advanced technologies, extending the company’s ability to deliver AI-enabled tools and services to a wider range of clients and sectors.

Grant Thornton Advisors CEO Jim Peko said: “By combining our multinational platform with CBIZ’s strong market presence, we are broadening our ability to support businesses through every stage of growth – from early development to global scale.

“Together, we will bring the quality, scope and capabilities clients need to navigate an increasingly complex and rapidly evolving business environment.”

Following completion, the combined multinational platform is expected to operate in more than 20 countries and territories. It is projected to generate nearly $7.5bn in revenue and employ more than 34,500 professionals across the Americas, Europe, the Middle East and the Asia-Pacific region.

Once the deal closes, CBIZ will be wholly owned by Grant Thornton Advisors. CBIZ common stock will be delisted and will no longer trade on the New York Stock Exchange.

After closing, Grant Thornton Advisors plans to separate CBIZ’s Benefits and Insurance Services segment into a new stand-alone entity backed by New Mountain Capital.

CBIZ president and CEO Jerry Grisko said: “This is a historic combination with a complementary cultural and strategic fit. CBIZ has grown rapidly over many years to become a leading professional services provider.

“Joining Grant Thornton Advisors accelerates the realisation of that vision, creating a stronger firm with new and exciting opportunities for our team members and enhanced service offerings for clients, while delivering significant value to CBIZ shareholders.”