Marcum LLP to be acquired in $2.3B deal

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CBIZ Inc. has entered into an agreement to acquire the non-attest business of Marcum LLP, according to a company statement. 

As part of the deal, Marcum’s attest business 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 deal is valued at $2.3 billion. Half of the acquisition will be paid in cash and the remainder shares of CBIZ common stock, according to the statement. 

Founded in 1951 and headquartered in New York City, Marcum has 43 offices in major markets across the U.S., including Melville, Riverhead and Bridgehampton offices on Long Island, and serves more than 35,000 clients. With about $1.2 billion in revenue and more than 3,500 professionals, Marcum ranks as the13th largest accounting firm in the U.S., providing professional services to entrepreneurial companies, midcap and micro-cap SEC registrants, and high-net-worth individuals. Its offerings 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 providing high-quality innovative professional services to our clients, and personalized, local client relationships supported by national resources,” Jeffrey Weiner, chairman and CEO of Marcum, said in the statement. “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 acquisition will make publicly traded CBIZ, which has 120 in 33 states, the seventh largest accounting services provider in the U.S. with about $2.8 billion in annual revenue, according to the company. 

“Today marks the most significant transaction in CBIZ’s history as we announce our agreement to acquire Marcum,” Jerry Grisko,president and CEO of CBIZ, said in the statement. “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.” 

The transaction is expected to close in the fourth quarter of this year subject to the approval of CBIZ stockholders, the approval of Marcum’s partners and other closing conditions.