CAMBRIDGE, Mass., and PROVIDENCE – Tofias PC, the second-largest regional accounting firm in New England, will be purchased by two Midwestern firms that “work together through an alternative practice structure,” the companies today announced.
Tofias has 200 associates and 28 shareholders / directors at four locations in Massachusetts and Rhode Island. Its attest practice (audits and reviews) will be acquired by Leawood, Kan.-based Mayer Hoffman McCann PC (MHM), while its non-attest practice will be acquired by Cleveland-based CBIZ Inc. (NYSE: CBZ), the companies said.
The deal is expected to close Dec. 31; financial terms were not disclosed.
“In an evolving business market, where more clients are looking for firms with a national presence, we are excited to introduce [CBIZ and MHM] to the New England marketplace and at the same time extend our reach beyond New England for our current and future clients,” Tracy Gallagher, stockholder and managing director of Tofias, said in a joint announcement today.
MHM focuses on attest services such as financial-statement audits for public and private companies, employee benefit plan audits and SAS 70 audits, as well as reviews, compilations, litigation support and reports on performance of agreed-upon procedures. After the Tofias acquisition is complete, it will have more than 250 shareholders.
The firm is “very excited about this new addition,” said Bill Hancock, MHM’s president. “Tofias has built a quality audit practice that – combined with the national resources of MHM – allows us to continue our national expansion into the New England marketplace. The professionals from Tofias also bring us nationally recognized credentials and enhanced capabilities,” Hancock added.
CBIZ – already the nation’s eighth-largest accounting-services provider, with more than 140 offices in 34 states – serves the business market with customized tax and advisory services, benefits consulting and administration, payroll and valuation, and human resources and information technology services.
“We are excited to acquire one of the premier New England-area accounting-service providers,” said Steven Gerard, CBIZ’s chairman and CEO. “This acquisition is an important part of our Financial Services Group’s national expansion plan, which includes acquiring outstanding businesses in key markets,” Gerard said. “I look forward to working with the outstanding professional staff at Tofias as they continue their impressive record of growth and client service.”
The Cleveland-based firm said it expects the Tofias purchase will be accretive to earnings in 2009, contributing about $38.0 million to revenue and about 4 cents per share to full-year earnings.
Tofias PC, founded in 1966, was honored by Providence Business News this year as one of the Best Places to Work in Rhode Island. It has offices in Providence, Newport, Cambridge, Mass., and New Bedford. Additional information is available at www.tofias.com.
Mayer Hoffman McCann PC, founded in 1954, specializes in attest services for mid-market and growing businesses, not-for-profit organizations and government agencies. MHM has more than 30 offices nationwide. For more information, visit www.mhm-pc.com.
CBIZ Inc. (NYSE: CBZ) provides a variety of services to help businesses manage their finances, work force and technology. It describes itself as the largest benefits specialist, and one of the largest accounting, valuation and medical practice management companies, in the United States. For more information, visit www.cbiz.com.
