Ernst & Young has acquired the largest mid-tier firm in Brazil, Terco Grant Thornton.
The International Accounting Bulletin understands negotiations were finalised in recent weeks and Grant Thornton International was first told about Terco’s intentions to leave yesterday.
Terco Grant Thornton reported fee income of BRL111 million in the year to 30 September 2009. The firm has 21 partners and 630 professionals across five offices in Brazil.
It is likely that Terco will be integrated with E&Y Brazil.
Grant Thornton International chief executive Ed Nusbaum commented: “It is regrettable that the partners of Terco have decided to sell to Ernst & Young. However, there will, inevitably be changes to the make up of our organisation as we execute on our global strategy.
“The recent developments in South Africa, China and elsewhere bear testimony to the strength of our brand and our strong business proposition. There will continue to be further realignments as we go forward. We wish Ernst & Young well with their acquisition.
“Strong brands are always subject to the interests of others, we are no exception to this rule and have to accept it as a mark of our success at building a differentiated and strong organisation.”