PROVIDENCE – CBIZ Inc., one of the nation's top tax accounting firms with offices at One Citizens Plaza, announced Wednesday that it has struck a deal to acquire the accounting firm Marcum LLP for $2.3 billion.
New York City-based Marcum also has offices in Providence.
The deal, being paid half in cash and half in stock, would make publicly traded CBIZ the seventh-largest accounting firm in the U.S. with approximately $2.8 billion in annual revenue with more than 10,000 employees and 135,000 clients, CBIZ said.
"Today marks the most significant transaction in CBIZ's history as we announce our agreement to acquire Marcum," said Jerry Grisko, CEO and president of CBIZ. “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."
Cleveland, Ohio-based CBIZ would acquire Marcum's consulting and tax services businesses while
Mayer Hoffman McCann P.C., a national independent CPA firm with which CBIZ has had an administrative service agreement for over 25 years, will acquire the attest – or auditing – business of Marcum when the transaction closes in the fall.
The deal would take privately held Marcum public, although the Wall Street Journal reported that the Marcum brand would be retired once the transaction is finalized.
It wasn't immediately clear what effect the pending acquisition might have on the local accounting landscape.
In Rhode Island, CBIZ & Mayer Hoffman McCann
employ 105 people and Marcum LLP employs 116, according to PBN research data.
In his statement to staff, Marcum Chairman and CEO Jeffrey M. Weiner said “very little will change."
“This strategic acquisition presents an incredible opportunity for CBIZ and Marcum to bring together the best talent in the industry to offer our clients an exceptional breadth of services and depth of expertise,” Weiner said in his statement. “Our combined force will deliver exceptional accounting, tax, advisory, business, and insurance services to middle-market clients and attract and retain the best and brightest talent.”
Founded in 1951, Marcum has 43 offices in major markets across the U.S., including offices at 100 Westminster St. in Providence, and serves more than 35,000 clients. The firm provides a wide range of professional services to entrepreneurial companies, midsize and small publicly traded companies, and high-net-worth individuals. The firm's solutions include traditional tax, attest, accounting, and advisory services, as well as technology solutions and executive search and staffing services.
“CBIZ and Marcum share a dedication to high-quality, innovative, professional services, investor protection, and personalized local client relationships," Weiner said. “By joining forces, we'll capitalize on our strengths, sharpen our insights in a variety of industries, and leverage our similar models to serve you better. We will continue to work alongside you as your trusted advisors for your most important strategic decisions.”
(UPDATE: Corrects day of announcement to Wednesday in lead paragraph.)
