In a transaction involving two of the nation’s top 100 accounting firms by revenue, top 10 firm BDO USA announced Wednesday its largest-ever expansion as it will be merging in Ridgeland, MS-based top 30 firm Horne in a deal expected to close on Nov. 1.
Financial terms of the deal weren’t disclosed. BDO USA pulled in $2.88 billion in revenue during its most recent fiscal year, while Horne had revenue of $271.4 million, according to INSIDE Public Accounting.
BDO USA said the expansion strengthens and grows its geographic footprint while substantially enhancing its government services capabilities, focusing on state and local government support.
Upon completion of the transaction, Horne’s more than 1,300 employees, including 30 principals, will be integrated into BDO USA practices, including assurance, tax, advisory, and BDO Capital Advisors. BDO USA said it will build on Horne’s disaster recovery experience to establish BDO Government Services LLC, a wholly owned subsidiary of BDO USA, P.C., comprising Horne’s government services practices and professionals in the continental U.S. and Puerto Rico.
Horne serves clients across the country with a presence in seven South and Southeastern states—Alabama, Florida, Louisiana, Mississippi, North Carolina, Tennessee, and Texas—as well as the District of Columbia and Puerto Rico.
In conjunction with this expansion, BDO USA will for the first time provide services directly to the government of Puerto Rico.
“This strategic combination brings together two firms with complementary strengths and shared values,” BDO USA CEO Wayne Berson said in a statement on Sept. 17. “Like BDO USA, Horne has built a culture focused on helping people, clients, and communities thrive.”
In 2023, BDO USA established an employee stock ownership plan, a qualified retirement plan established as a trust, where current and future employees receive beneficial ownership in the company over time. BDO USA is the largest accounting firm in the U.S. to have an ESOP.
- Related article: BDO USA Calls Its New ESOP ‘a Game-Changer’ for the Profession
“We are thrilled to have fueled our largest expansion to date through the advantages created by our employee stock ownership plan,” Berson added. “The ESOP has not only supported our growth and investment goals but has also set our culture apart—playing a critical role in our firms coming together.”
Founded in 1962, Horne’s experience and knowledge span government services, healthcare, construction, franchise operations, and financial institutions, with a particular strength in disaster recovery and federal program compliance at the state and local level and in Puerto Rico. The accounting firm has managed more than $126 billion in state and federal funding streams over more than 15 years and has provided support to government leaders at all levels as they have set up processes and structures for sustained community improvement during disaster recovery.
“At Horne, our purpose is to ‘deliver with care’—care for our team members, our clients, and the communities we serve, a philosophy that aligns with BDO USA’s commitment of putting people first. BDO’s leadership in creating an ESOP demonstrates their commitment to team members and solidifies the trust that the public has placed in our profession,” said Rusty Butcher, CEO and managing partner of Horne. “Joining BDO USA provides our people and clients with greater resources, capabilities, and solutions, expanding our ability to meet evolving needs and deliver even greater value to the organizations and communities we serve.”
The practice in Puerto Rico will continue under local leadership, supporting clients and the more than 130 team members who live, work, and serve across the island, the firms said. Since 2018, this team has delivered disaster recovery services to the communities of Puerto Rico. BDO USA emphasized that it will “uphold the strong tradition of service established by Horne professionals, supporting the people and government of Puerto Rico—especially in their ongoing recovery efforts beginning with Hurricanes Irma and María.”
“This combination positions us to deliver even greater value and efficiency, as well as enhanced technology to our clients across our core services and specifically within government services,” said Neil Forbes, managing partner of government services and chair of Horne’s board of directors. “Together, we will build on our legacy of supporting communities—especially in times of crisis and beyond—while creating new opportunities for our team members and the clients we serve.”
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