UK-based accountancy firm MHA has announced a significant expansion into Europe with the acquisition of Baker Tilly’s business in Cyprus and Greece for €24m ($27.2m), the Financial Times reported.
The acquisition of Baker Tilly South East Europe comes after MHA’s listing on the London Stock Exchange’s Alternative Investment Market (AIM) last month.
MHA had previously announced plans to pursue expansion through cross-border mergers following its public offering.
The deal involves €6.5m in cash and €17.5m in shares, with 10% of the purchase price earmarked for employees of the acquired business.
Baker Tilly South East Europe, which provides audit, tax, advisory, legal, and corporate services, employs nearly 400 people across Cyprus and Greece.
For the 2024 financial year, the firm reported revenue of €19.4m and profit before tax of €2.5m.
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By GlobalDataMHA, which represents the UK and Ireland arm of the Baker Tilly network, said the acquisition supports its strategy to expand its European footprint.
The deal follows increased consolidation activity in the accountancy sector, as private equity firms look to scale up operations and increase profitability.
Last month, Baker Tilly’s US division, which sold a majority stake to private equity investors in 2023, announced a merger with Moss Adams, forming what will become the sixth-largest accounting firm in the US by revenue.
MHA is currently under investigation by the Financial Reporting Council regarding its audit of construction group ISG’s 2022 accounts. This is the second formal probe into the firm’s audit work by the UK regulator.
