CBIZ stock jumps 17% as Grant Thornton agrees $5B takeover

Shares of CBIZ CBZ surged about 17% on Wednesday after Grant Thornton Advisors agreed to acquire the accounting and advisory firm in a $5 billion all-cash deal, creating one of the largest professional services firms in the United States and extending a wave of consolidation sweeping through the accounting industry.

Under the agreement, CBIZ shareholders will receive $55 per share in cash, representing a premium of about 17.8% to the stock's previous closing price and roughly 54% above its average trading price over the past 30 days.

Although the offer represents a substantial premium to recent trading levels, it remains well below the record high of $88.65 the shares reached early last year.

The transaction is expected to close during the fourth quarter of 2026, subject to shareholder and regulatory approvals.

Merger creates the fifth-largest accounting firm in the US

The acquisition will combine two of the country's largest mid-market accounting firms, elevating the merged organisation to the fifth-largest provider of accounting, tax and advisory services in the United States.

The combined company is expected to generate nearly $7.5 billion in annual revenue and operate across more than 20 countries and territories.

Based on industry revenue rankings compiled by Accounting Today, the merged business will overtake RSM, which reported approximately $4.9 billion in revenue last year, leaving only the Big Four firms—Deloitte, EY, KPMG and PwC—larger in the US market.

"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," Grant Thornton Advisors CEO Jim Peko said.

Despite becoming the country's fifth-largest accounting firm, Peko indicated that expanding into the traditional Big Four market is not the firm's immediate objective.

“We don’t have a desire today to try to become one of the Big Five,” Peko told the Financial Times.

“We believe that we’re very good in the target market that we serve. We think that there’s tremendous growth opportunity in that market. And we want to go broader and deeper within that market.

“It’s great to be number five, but we’re also not focused on league tables.”

Consolidation reshapes the accounting industry

The transaction marks the latest chapter in an accelerating consolidation trend among mid-tier accounting firms seeking greater scale to compete with the industry's largest players.

Last year, Baker Tilly and Moss Adams completed a combination valued at approximately $7 billion, while CBIZ itself significantly expanded through its $2.3 billion acquisition of Marcum in 2024.

That acquisition transformed CBIZ into one of the country's largest accounting firms and strengthened its position as the only publicly listed audit firm in the United States.

However, the integration of Marcum also weighed on earnings, with repeated financial disappointments reducing the company's valuation relative to private equity-backed competitors and ultimately making it an attractive takeover target.

According to the companies, the Grant Thornton transaction represents the largest accounting firm combination in more than 25 years, making it the biggest industry deal since the consolidation wave that culminated in the 1998 merger between Price Waterhouse and Coopers & Lybrand.

Private equity continues to back expansion

Grant Thornton has been pursuing aggressive expansion since receiving investment from a consortium led by private equity firm New Mountain Capital in 2024.

New Mountain is providing additional funding to support the CBIZ acquisition.

Following completion of the transaction, Grant Thornton plans to separate CBIZ's benefits and insurance services business into an independent company backed by New Mountain.

The companies also announced that the agreement includes a "go-shop" provision allowing CBIZ to solicit competing acquisition proposals until 27 August.

CBIZ employs more than 9,500 people across the United States and primarily serves middle-market businesses and individual clients.

Grant Thornton said the merger will provide those clients with broader international capabilities through its global network while expanding the firm's advisory, tax and audit offerings across a significantly larger platform.