Grant Thornton Advisors said Monday it has completed its $5 billion acquisition of CBIZ, which is expected to make Chicago-based Grant Thornton the fifth-largest accounting firm in the U.S. by revenue behind the Big Four.
The deal, which was announced in late July, is the largest of its kind in public accounting in more than two decades. A series of deals between the Big Eight accounting firms in the late 1980s and 1990s formed the firms that are now the four largest in the U.S. today—Deloitte, PwC, Ernst & Young, and KPMG—with Coopers & Lybrand combining with Price Waterhouse to become PricewaterhouseCoopers in 1998 being the last such deal.
Grant Thornton says the acquisition strengthens Grant Thornton Advisors’ multinational, cross-border platform, which includes member firms in the Grant Thornton International network from more than 25 countries and territories. With the addition of CBIZ, the platform generates more than $7 billion in annual revenue and includes more than 34,500 professionals across the Americas, Europe, the Middle East, and the Asia-Pacific region.
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The combined CBIZ and Grant Thornton Advisors firm will go to market under the Grant Thornton brand and operate through an integrated business model. Jim Peko will continue in his role as CEO of Grant Thornton Advisors and leader of its multinational platform, according to a Nov. 2 media release.
“Today, we bring together two firms with complementary capabilities and a shared commitment to incredible client service,” Peko said in a statement. “CBIZ’s strong U.S. relationships and industry knowledge, combined with our expertise, multinational reach, and investment in technology, give us a powerful formula for serving clients no matter how complex their needs. Our focus now is on bringing together the best of both organizations to help our clients achieve even greater success while opening new paths for our people to grow and thrive.”
With the closing of the transaction, CBIZ is now wholly owned by Grant Thornton Advisors, and its common stock (NYSE: CBZ) has ceased trading on the New York Stock Exchange. CBIZ had been the only publicly traded accounting services provider in the U.S.
Grant Thornton sold a majority stake to New Mountain Capital in June 2024 and has since operated in an alternative practice structure: Grant Thornton LLP, a licensed CPA firm, provides attest services, and Grant Thornton Advisors provides business advisory and non-attest services. According to a media release that announced the deal in July, New Mountain Capital will be investing incremental equity to support the acquisition of CBIZ.
“This transaction significantly expands a platform that already had strong momentum, fueled by exceptional talent, leading AI resources, and deep access to capital,” Andre Moura, managing director at New Mountain Capital, said in a statement on Nov. 2. “We’re proud to support Grant Thornton Advisors with additional resources to empower our people to win in the market and deliver the highest-quality work. Together, Grant Thornton Advisors and CBIZ will be stronger than ever with greater reach and enhanced capabilities to serve a wide range of clients at every stage of growth.”
Nikhil Devulapalli, managing director at New Mountain Capital, added, “Grant Thornton Advisors and CBIZ together have broad reach and impressive capabilities that are singular in the accounting and consulting space. Today, Grant Thornton Advisors is in a stronger position than ever to serve its clients and create meaningful opportunities for its partners and professionals.”
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A separate attest transaction involving Grant Thornton LLP and CBIZ CPAs, CBIZ’s audit and attest services affiliate, is expected to close later this year. Following the closing, CBIZ CPAs will remain a separate licensed public accounting firm during a transition period, after which it’s expected to be integrated with Grant Thornton LLP.
In addition, CBIZ Benefits & Insurance Services launched Monday as a standalone company, backed by New Mountain Capital. The company employs more than 1,600 professionals and has seen its annual revenue grow nearly 40% since 2020 to more than $400 million. It’s now expected to be one of the top 30 insurance brokers in the U.S.
CBIZ Benefits & Insurance Services provides employee benefits consulting, human capital advisory solutions, property and casualty insurance, retirement and investment solutions, and individual insurance.
“This is a defining moment for our organization. We are launching an independent company with a strong foundation, a talented team, and a clear vision for the future,” Michael Kouzelos, CEO of CBIZ Benefits & Insurance Services, said in a statement. “Our clients face increasingly complex decisions around benefits, risk, retirement, talent, and workforce strategy. As a standalone firm, we are uniquely positioned to expand our capabilities and enhance the support we provide to clients as they navigate those challenges. Backed by New Mountain Capital and powered by the dedication of our people, we are exceptionally well-positioned to drive growth, expand our capabilities, and continue building on the trust our clients place in us every day.”
Polly Thomas, chief operating officer at CBIZ Benefits & Insurance Services, added, “For more than four decades, we’ve built lasting client relationships through exceptional service, personal attention, and a level of care that sets us apart in our industry. In this next chapter, our commitment to our clients will not change. We will continue to advise employers across benefits, payroll, retirement, and risk with innovative, tailored solutions designed to best serve and grow their business.”
Goldman Sachs & Co. LLC served as financial advisor to CBIZ. Weil, Gotshal & Manges LLP served as legal advisor to CBIZ, and Teneo served as strategic communications advisor to CBIZ. Deutsche Bank acted as lead financial advisor for Grant Thornton Advisors and New Mountain Capital. Other financial advisors included J.P. Morgan, BMO Capital Markets, BofA Securities, RBC Capital Markets, UBS Investment Bank, and Jefferies. Evercore acted as financial advisor on the CBIZ Benefits & Insurance Services segment. Simpson Thacher & Bartlett LLP, Mayer Brown LLP, and Hunton Andrews Kurth LLP served as legal advisors. Goldin Solutions served as strategic communications advisor.
Photo credit: Grant Thornton
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