Grant Thornton Advisors has agreed to acquire professional services firm CBIZ Inc. in a $5 billion cash deal, marking one of the largest transactions in the US accounting industry. According to reports from NDTV Profit, The Economic Times, wallstreet-online.de, Reuters, TradingView News, and StockTwits, the deal will create a combined professional services platform that ranks as the fifth-largest provider of accounting, tax and advisory services in the United States. Under the agreement, CBIZ shareholders will receive $55 per share in cash, representing an approximately 54% premium to the stock's previous closing price and roughly 54% above its 30-day volume-weighted average share price. The transaction, described as the largest accounting firm combination in more than 25 years, includes a 'go-shop' period that allows CBIZ to seek competing offers until August 27, with Goldman Sachs advising CBIZ on the transaction and Deutsche Bank serving as lead financial adviser for Grant Thornton Advisors.
The transaction demonstrates private equity's continued influence on the accounting sector, with the deal following Grant Thornton's significant growth investment from PE firm New Mountain Capital in May 2024. As reported by CFO.com, Francine McKenna, adjunct professor at Montclair State University and author of The Dig accounting newsletter, noted she "could not have predicted" the merger but was not surprised by it, stating that "consolidation seems to be the strategy here." Following the announcement, CBIZ shares surged 17% in morning trading on Wednesday, heading toward their biggest single-day gain in over 20 years and pushing the stock toward a six-month high. The transaction is expected to close in the fourth quarter of 2026, subject to regulatory approvals and other closing conditions. The deal will significantly expand Grant Thornton's presence in the US accounting market, where the industry is dominated by the Big Four firms: Deloitte, EY, KPMG and PwC.
The combination will create a platform with operations across more than 20 countries and territories and expected annual revenue of nearly $7.5 billion. According to NDTV Profit, The Economic Times, wallstreet-online.de, Reuters, TradingView News, and StockTwits, upon the transaction's expected closing in the fourth quarter, Grant Thornton is expected to become the fifth-largest firm with more than $5 billion in domestic revenue and $7.5 billion globally. The firm will employ nearly 35,000 employees around the world, as reported by CFO.com. CBIZ CEO Jerry Grisko described the combination as having a complementary cultural and strategic fit, stating that "This is a historic combination with a complementary cultural and strategic fit." The merger will create a much larger global professional services platform, with Grant Thornton saying the combined company will offer greater global support, better technology solutions, and more services across different stages of business growth. The companies are likely not combining to compete with the Big Four on public company audits, but are instead looking to build a broader geographic footprint and boost their tax and advisory offerings.
The acquisition will enable Grant Thornton to offer clients cross-border business support, broader professional services, AI-powered technology solutions, and better client experiences. As reported by NDTV Profit, The Economic Times, wallstreet-online.de, Reuters, TradingView News, and StockTwits, the deal will help Grant Thornton expand its services and reach more businesses by combining operations. Grant Thornton said the combined company will offer greater global support, better technology solutions, and more services across different stages of business growth. The acquisition is the latest example of consolidation in the US accounting industry, with mid-sized accounting firms joining forces to compete with the Big Four. These companies are trying to increase their size, technology capabilities and global presence. The transaction is backed by New Mountain Capital, which previously invested in Grant Thornton Advisors in May 2024 and will provide additional equity to support the acquisition. After the acquisition closes, Grant Thornton plans to separate CBIZ's benefits and insurance services division into a new standalone company supported by New Mountain Capital.
Industry analysts view the transaction favorably, with William Blair's Andrew Nicholas noting that the roughly 10 times EV/EBITDA multiple looks attractive relative to similar transactions in the past couple months. However, he noted that CBIZ's second-quarter results muddy the picture due to sequential degradation in organic growth. CBIZ President and CEO Jerry Grisko described the combination as having a complementary cultural and strategic fit, accelerating the realization of CBIZ's vision while creating enhanced service offerings for clients and significant value for shareholders. The acquisition reflects a broader consolidation trend in the accounting sector as mid-market firms look to scale their advisory, tax and consulting capabilities to compete with larger global players. CBIZ also reported second-quarter earnings of $0.91 per share, ahead of analyst estimates of $0.72 per share, as per Koyfin data. CBIZ shares were on track for their biggest daily percentage gain since 2003, with retail sentiment dropping to 'bearish' from 'neutral' territory on StockTwits. The deal is expected to close in the fourth quarter of 2026, pending shareholder and regulatory approvals.
