US-based insurance and financial advisory services provider CBIZ has agreed to acquire the non-attest business of accounting and advisory services firm Marcum for up to $2.3bn.
Established in 1951 in New York City, Marcum employs more than 3,500 professionals at 43 offices in major markets across the US, serving more than 35,000 clients.
The company provides a wide range of professional services to midcap and micro-cap SEC registrant companies, and high-net-worth individuals, making around $1.2bn in revenue.
It offers traditional tax, attest, accounting, and advisory services, along with technology solutions and executive search and staffing services.
Under the terms of the acquisition, half of the transaction consideration is expected to be paid in cash and the remainder shares of CBIZ common stock.
In parallel to the closing of the transaction, the attest business of Marcum will be acquired by Mayer Hoffman McCann, a national independent CPA firm.
CBIZ has signed an administrative service agreement with Mayer Hoffman McCann for more than 25 years.
The proposed acquisition will make CBIZ the seventh-largest accounting services provider in the US with around $2.8bn in annual revenue.
Marcum chairman and CEO Jeffrey Weiner said: “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.
“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 business.
“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.”
CBIZ said that the proposed transaction will strengthen its position as a provider of professional services to the middle market and the seventh-largest accounting services provider in the US.
The acquisition is expected to widen its range of services and deepen its expertise, including the development of advanced and actionable solutions.
The combined industry knowledge will provide access to new sectors, allow expansion of its presence in target industries, and increase investment in innovation and technology, said CBIZ.
Perella Weinberg Partners served as financial advisor and BakerHostetler as legal advisor to CBIZ, while Deutsche Bank served as financial advisor and Dechert as legal advisor to Marcum.
CBIZ president and CEO Jerry Grisko said: “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.
“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.”
