Key Takeaways
- • Grant Thornton Advisors completed its all-cash acquisition of CBIZ, Inc. at an enterprise value of $5 billion, creating the fifth-largest U.S. provider of professional services, tax and advisory offerings with more than $5 billion in annual domestic revenue, according to the companies' joint announcement.
- • The combined platform generates more than $7 billion in annual revenue and employs more than 34,500 professionals across more than 25 countries and territories.
- • New Mountain Capital, which led an investment in Grant Thornton Advisors in May 2024, provided additional equity to fund the transaction, which the companies describe as the largest of its kind in more than 25 years.
- • CBIZ's common stock (NYSE: CBZ) has ceased trading, and CBIZ is now wholly owned by Grant Thornton Advisors; its Benefits & Insurance Services segment has been spun out as an independent company backed by New Mountain Capital.
- • A separate attest transaction involving Grant Thornton LLP and CBIZ CPAs is expected to close later this year, with CBIZ CPAs expected to eventually integrate into Grant Thornton LLP after a transition period.
Summary
Grant Thornton Advisors LLC, New Mountain Capital and CBIZ, Inc. announced that Grant Thornton Advisors has completed its acquisition of CBIZ with an enterprise value of $5 billion, according to a Business Wire release. The transaction is all-cash and, per the companies, creates the fifth-largest U.S. provider of professional services, tax and advisory offerings. The companies describe it as the largest transaction of its kind in more than 25 years.
With the addition of CBIZ, the Grant Thornton Advisors multinational platform generates more than $7 billion in annual revenue and includes more than 34,500 professionals across the Americas, Europe, the Middle East and Asia-Pacific. The platform comprises 20 aligned firms within the Grant Thornton International Limited network. The combined organization will ultimately go to market under the Grant Thornton brand and operate through an integrated business model. Jim Peko will continue as chief executive officer of Grant Thornton Advisors and leader of its multinational platform.
In connection with the closing, CBIZ's common stock (NYSE: CBZ) ceased trading on the New York Stock Exchange, and CBIZ is now wholly owned by Grant Thornton Advisors. CBIZ's Benefits & Insurance Services segment has been established as an independent company backed by New Mountain Capital. A separate attest transaction involving Grant Thornton LLP and CBIZ CPAs is expected to close later this year. CBIZ CPAs will remain a separate licensed public accounting firm during a transition period, after which it is expected to be integrated with Grant Thornton LLP.
Peko said the combination pairs CBIZ's U.S. relationships and industry knowledge with Grant Thornton's multinational reach and technology investment, and that the company will accelerate its previously announced $1 billion investment in AI and advanced technologies. The firm also said the combination will create opportunities for its approximately 20,000 U.S.-based professionals, including new models for equity participation and partnership-track careers.
New Mountain Capital, a New York-based firm with approximately $60 billion in assets under management, provided additional equity to support the acquisition. Andre Moura and Nikhil Devulapalli, managing directors at New Mountain Capital, commented on the transaction. Goldman Sachs & Co. LLC served as financial advisor to CBIZ, while Deutsche Bank acted as lead financial advisor to Grant Thornton Advisors and New Mountain Capital, with J.P. Morgan, BMO Capital Markets, BofA Securities, RBC Capital Markets, UBS Investment Bank, and Jefferies also advising.
With the addition of CBIZ, the Grant Thornton Advisors multinational platform generates more than $7 billion in annual revenue and includes more than 34,500 professionals across the Americas, Europe, the Middle East and Asia-Pacific. The platform comprises 20 aligned firms within the Grant Thornton International Limited network. The combined organization will ultimately go to market under the Grant Thornton brand and operate through an integrated business model. Jim Peko will continue as chief executive officer of Grant Thornton Advisors and leader of its multinational platform.
In connection with the closing, CBIZ's common stock (NYSE: CBZ) ceased trading on the New York Stock Exchange, and CBIZ is now wholly owned by Grant Thornton Advisors. CBIZ's Benefits & Insurance Services segment has been established as an independent company backed by New Mountain Capital. A separate attest transaction involving Grant Thornton LLP and CBIZ CPAs is expected to close later this year. CBIZ CPAs will remain a separate licensed public accounting firm during a transition period, after which it is expected to be integrated with Grant Thornton LLP.
Peko said the combination pairs CBIZ's U.S. relationships and industry knowledge with Grant Thornton's multinational reach and technology investment, and that the company will accelerate its previously announced $1 billion investment in AI and advanced technologies. The firm also said the combination will create opportunities for its approximately 20,000 U.S.-based professionals, including new models for equity participation and partnership-track careers.
New Mountain Capital, a New York-based firm with approximately $60 billion in assets under management, provided additional equity to support the acquisition. Andre Moura and Nikhil Devulapalli, managing directors at New Mountain Capital, commented on the transaction. Goldman Sachs & Co. LLC served as financial advisor to CBIZ, while Deutsche Bank acted as lead financial advisor to Grant Thornton Advisors and New Mountain Capital, with J.P. Morgan, BMO Capital Markets, BofA Securities, RBC Capital Markets, UBS Investment Bank, and Jefferies also advising.
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