Marcum to be Acquired by CBIZ
CBIZ, Inc., a leading national provider of financial, insurance and advisory services, has announced that it has entered into a definitive agreement to acquire the non-attest business of Marcum, LLP, which will make CBIZ the seventh-largest accounting services provider in the U.S. 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 shares of CBIZ common stock.
Marcum has 43 offices in major markets across the U.S. and serves more than 35,000 clients. With approximately $1.2 billion in revenue and more than 3,500 professionals, Marcum ranks as the 13th-largest accounting firm in the U.S. Marcum provides a wide range of professional services to entrepreneurial companies, midcap and micro-cap SEC registrants, 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.
Expected Transaction Benefits Post-Close:
- Market Position: Solidify position as a leading provider of professional services to the growing middle market and the seventh largest accounting services provider in the U.S.
- Growth Strategy: Scale accelerates growth and further positions CBIZ as an acquirer of choice
- Our People: Attract and retain the best and brightest in our industries; enhance learning and development aligned to meaningful career paths and expanded growth opportunities
- Client Experience: Offer an unmatched breadth of services and depth of expertise including the development of innovative and actionable solutions
- Industry Expertise: Combined industry knowledge enables access to new sectors and expands presence in target industries
- Innovation and Technology: Enable greater investment in technology to support data-driven insights and solutions while driving innovation, increasing efficiency and enhancing performance
- Shareholder Value: Expect to be accretive in 2025 with an estimated contribution to adjusted earnings per share of approximately 10%
“Today marks the most significant transaction in CBIZ’s history as we announce our agreement to acquire Marcum,” said Jerry Grisko, president and CEO of CBIZ. “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 & CEO of Marcum, said, “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. 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.”
The transaction is expected to close in the fourth quarter of 2024 subject to the approval of CBIZ stockholders, the approval of Marcum’s partners and other customary closing conditions.
Perella Weinberg Partners is serving as CBIZ’s financial advisor and BakerHostetler is serving as CBIZ’s legal advisor for the transaction. Deutsche Bank is serving as Marcum’s financial advisor and Dechert LLP is serving as Marcum’s legal advisor for the transaction.