The Largest Deal in the U.S. Accounting Industry in 25 Years: Mid-Cap CBIZ to Acquire a Competitor
CBIZ Shares Soar — Accounting Firm to Be Acquired by a Competitor / Photo: Facebook / cbizservices
Shares of CBIZ, a mid-cap professional services adviser, surged around 18% on Wednesday to their highest level since early this year. The company announced that it has agreed to be acquired at a premium by privately held rival Grant Thornton Advisors. If completed, the transaction will be the largest of its kind in more than 25 years and create the fifth-largest U.S. provider in the industry, CBIZ notes.
Details
CBIZ rose around 18% on the New York Stock Exchange on Wednesday to $54.66 per share, the stock's best finish since early 2026. The company announced that Grant Thornton Advisors and its affiliates have agreed to acquire CBIZ. The buyer will pay $55 per share, representing a premium of approximately 54% to the stock’s 30-day volume-weighted average price.
The CBIZ board has approved the transaction, which must now receive approval from the company’s shareholders and regulators. The parties expect to complete the transaction in the fourth quarter. CBIZ will then become a private company, and its stock will cease trading on the NYSE.
Under the agreement, however, the mid-cap company may actively solicit and consider alternative acquisition proposals through August 27. If CBIZ receives a better offer, its board may terminate the agreement with Grant Thornton.
Rationale for the deal
If it goes through, the deal will be the largest transaction of its kind in more than 25 years, CBIZ notes. Grant Thornton will become the fifth-largest U.S. provider of professional, tax, and advisory services, with more than $5 billion in annual domestic revenue. The combined company will operate in more than 20 countries and generate almost $7.5 billion in revenue, according to the announcement.
New Mountain Capital will support the transaction. The fund invested in Grant Thornton in 2024 and will make an additional equity investment, according to CBIZ. The company also stated that its benefits and insurance services business will be separated into an independent firm backed by New Mountain.
Stock performance
CBIZ shares have jumped 9% year to date. Wall Street has three “buy” ratings on the stock versus one “hold” rating. The average target price of $45.33 per share is below Grant Thornton’s offer.
