In a merger of two huge accounting firms, Marcum, which has multiple offices in New Jersey, has been acquired by CBIZ, the seventh-largest accounting services provider in the U.S., creating a firm with approximately $2.8 billion in annual revenue.
Concurrent with the closing of this transaction, the attest business of Marcum will be acquired by Mayer Hoffman McCann P.C., a national independent CPA firm with which CBIZ has had an Administrative Service Agreement for over 25 years.
The cash-and-stock transaction is valued at approximately $2.3 billion. It is expected that approximately half of the transaction consideration will be paid in cash and the remainder in shares of CBIZ common stock.
The transaction is expected to close in the fourth quarter, subject to the approval of CBIZ stockholders, the approval of Marcum’s partners and other customary closing conditions.
Marcum, founded in 1951 and headquartered in New York City, is the 13th-largest accounting firm in the country. It has 43 offices in major markets across the U.S. and serves more than 35,000 clients. It has approximately $1.2 billion in revenue and more than 3,500 professionals.
CBIZ CEO Jerry Grisko was thrilled to make the announcement.
“Today marks the most significant transaction in CBIZ’s history, as we announce our agreement to acquire Marcum,” he said. “At closing, our company will have combined annual revenue of approximately $2.8 billion, more than 10,000 team members and over 135,000 clients.
“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.”
Jeffrey Weiner, chairman and CEO of Marcum, also applauded the announcement.
“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,” he said. “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.”
