Grant Thornton's $5B CBIZ Buy Reshapes Accounting

Grant Thornton has agreed to acquire rival CBIZ for $5 billion in cash, a transaction that stands as the largest takeover in the accounting sector in a generation. Announced on Tuesday, the deal will create a combined entity boasting over $5 billion in US revenue, solidifying its position as the biggest US audit and consulting firm outside of the Big Four. This move highlights the significant consolidation occurring in the mid-market accounting sector, largely driven by private equity investments.

Since selling a majority stake to New Mountain Capital two years ago, Grant Thornton has been pursuing an aggressive acquisition strategy. CBIZ, which has historically served small to medium-sized businesses and individual clients, was the only US audit firm listed on the stock market for nearly 30 years. The acquisition offers CBIZ shareholders a premium of 18% over Tuesday's closing price, though it falls short of its peak valuation early last year. Post-acquisition, New Mountain Capital plans to spin off CBIZ's non-accounting divisions, including retirement benefit and insurance services, into a separate company.