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Why Grant Thornton is buying CBIZ in $5 billion deal and what it means for the US accounting industry
Grant Thornton is buying CBIZ in a $5b deal to become the fifth-largest US accounting firm, expanding advisory services, AI capabilities and global reach.
Grant Thornton Advisors has agreed to buy accounting and advisory company CBIZ Inc. in a $5 billion cash deal. The companies announced the deal on Wednesday. After the deal is completed, the combined company will become one of the largest accounting and professional services firms in the US. The deal comes at a time when many accounting firms are getting bigger to compete with the industry's largest companies.
Under the deal, CBIZ shareholders will receive $55 for each share they own. This is 17.8% more than the company's previous closing share price, according to Reuters. It is also about 54% higher than CBIZ's average share price over the past 30 days, according to Quartz. After the announcement, CBIZ shares rose 17.5% in premarket trading.
How big will Grant Thornton become?
After the acquisition, Grant Thornton is expected to become the fifth-largest provider of professional, tax and advisory services in the US. It will rank behind the four biggest accounting firms, known as the Big Four: Deloitte, EY, KPMG, PwC. The Big Four currently dominate the US accounting market.
The merger will create a much larger global professional services platform. The combined company will operate in more than 20 countries and territories, generate nearly $7.5 billion in revenue, and have more than 34,500 professionals, as reported by Quartz.
Why is Grant Thornton buying CBIZ?
The deal will help Grant Thornton expand its services and reach more businesses. CBIZ has a strong presence in the middle-market business sector in the US. By combining their operations, Grant Thornton wants to offer clients more advisory services, greater global support, better technology solutions, and more services across different stages of business growth.
Grant Thornton Advisors CEO Jim Peko said the deal will strengthen the company’s ability to serve businesses worldwide. He said, "By combining our multinational platform with CBIZ's strong market presence, we're broadening our ability to support businesses through every stage of growth — from early development to global scale", according to the company statement.
When will the CBIZ deal close?
The acquisition is the latest example of consolidation in the US accounting industry. Mid-sized accounting firms are joining forces to compete with the Big Four. These companies are trying to increase their size, technology capabilities and global presence, according to a Reuters report.
The acquisition is expected to be completed in the fourth quarter of 2026. However, the deal still needs approval from CBIZ shareholders, regulatory approvals, and completion of other standard closing conditions.
How will the deal help clients?
Grant Thornton said the combined company will offer cross-border business support, broader professional services, AI-powered technology solutions, and better client experiences. The company said it will continue focusing on high-quality service.
Grant Thornton's $5 billion purchase of CBIZ is a big step to grow its business in the US accounting industry. The deal will help the company become a stronger competitor to the Big Four accounting firms by increasing its revenue, global reach and advisory services. It also shows that accounting firms are using mergers, private equity investment and AI technology to grow bigger and stay competitive.
