CBIZ Inc. is about to grow dramatically after reaching an agreement to acquire the non-attest business of Marcum LLP in a cash and stock deal worth about $2.3 billion.
Marcum partners will receive about half the overall price of the deal in cash, and the other half will come through shares of CBIZ common stock (NYSE: CBZ), which opened at $78.15 a share on Wednesday. Marcum will fold into Mayer Hoffman McCann PC, the independent national CPA firm with which CBIZ has an Administrative Services Agreement.
Marcum was founded in 1951 and is based in New York City, with 43 offices across the U.S. The closest one to Kansas City is in St. Louis. Marcum is the 13th-largest accounting firm in the United States, generating about $1.2 billion in annual revenue and employing about 3,500 people.
CBIZ is the fifth-largest accounting firm in the Kansas City area by local staff, according to the Kansas City Business Journal’s most recent List. It reported 267 local professional staff as of March.
The merger with Marcum will make CBIZ the seventh-largest accounting services provider in the nation, with about $2.8 billion in annual revenue. CBIZ is headquartered in Cleveland and is the parent company of MHM. MHM is based in Kansas City.
CBIZ CEO and President Jerry Grisko said the transaction was the most significant in the company’s history.
“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,” Grisko said in a release. “This transaction enables CBIZ to strengthen our presence in key markets, continue to attract and retain top talent, and innovate through technology. We are excited about our 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.”
The deal is expected to close in the fourth quarter and is subject to approval by CBIZ shareholders and Marcum’s partners.
Perella Weinberg Partners provided financial adviser services for the transaction, and BakerHostetler was the legal adviser. Deutsche Bank was Marcum’s financial adviser, and Dechert LLP was its legal adviser.
SOURCE: Kansas City Business Journal