CBIZ announced Wednesday it entered into an agreement to acquire the non-attest business of Marcum LLP in a $2.3 billion cash-and-stock deal.

The transaction is expected to close in the fourth quarter of this year, pending shareholder/partner approval and other customary closing conditions. It will make CBIZ the seventh-largest accounting services provider, with nearly $2.8 billion in revenue.

“Today marks the most significant transaction in CBIZ’s history as we announce our agreement to acquire Marcum,” said Jerry Grisko, president and CEO, CBIZ. “At closing, our company will have combined annual revenue of approximately $2.8 billion, more than 10,000 team members and over 135,000 clients.”

Here in New Jersey, CBIZ has nine offices; Marcum has five.

Mayer Hoffman McCann PC will acquire the target’s attest business. The national independent CPA firm has had an administrative service agreement with CBIZ for more than 25 years.

According to CBIZ, key expected benefits of the deal include:

• Market position – Establishes firm as seventh-largest national accounting services provider; solidifies position as leading provider in growing middle market.
• Growth strategy – Scale accelerates growth and positions the firm for future deals.
• Talent attraction and retention – Creates more career development and growth opportunities.
• Client experience – Offers an unmatched array of services and depth of expertise.
• Industry expertise – Combined knowledge enables access to new sectors, expansion in target industries.
• Innovation and technology – Enables greater investment in technology.
• Shareholder value – Expected to be accretive in 2025, with an estimated contribution to adjusted earnings per share of nearly 10%.

Proven track record

“Together, we will provide a breadth of services and depth of expertise that is unmatched in our industry, allowing us to bring a broader array of high-value solutions to our combined client base,” said Grisko. “This transaction enables CBIZ to strengthen our presence in key markets, continue to attract and retain top talent, and innovate through technology.”

“CBIZ and Marcum share a dedication to providing high-quality innovative professional services to our clients, and personalized, local client relationships supported by national resources,” said Jeffrey Weiner, chairman and CEO of Marcum. “By joining forces, we will capitalize on our strengths and leverage our similar models to bring more diversified services and even greater subject matter expertise to our clients and attract new businesses.”

Perella Weinberg Partners serves as CBIZ’s financial advisor for the deal, while BakerHostetler serves as legal advisor. Marcum has enlisted Deutsche Bank as financial advisor and Dechert LLP as legal advisor for the transaction.

“We both have a proven track record of growth through successful acquisitions, and we are excited to bring these two best-in-class organizations together,” said Weiner.

In September 2022, Friedman LLP and Marcum merged. At the time, the deal established a national top-12 firm with nearly $1 billion in revenue.

“We are excited about or future together and the opportunities it will provide our people, the solutions we will bring to our clients and the value we expect it will create for shareholders,” said Grisko.

Editor’s note: This story was updated at 2:32 p.m. ET July 31, 2024, to note that CBIZ has nine offices in New Jersey, not seven as previously stated.

More M&A news in the industry:

Accounting firms Forvis and Mazars finalized their planned union June 1, creating a $5 billion global operation. Click here to read more.