July 29 (Reuters) - Grant Thornton Advisors will buy professional services firm CBIZ for $5 billion in cash, the companies said on Wednesday, in a deal that would create one of the biggest accounting services providers in the United States.
CBIZ shares jumped 17.5% in premarket trading.
The deal would help Grant Thornton expand globally and make it the fifth-largest U.S. provider of professional, tax and advisory services.
The accounting market in the U.S. is dominated by the Big Four firms: Deloitte,
EY, KPMG and PwC.
CBIZ shareholders will receive $55 per share, implying a 17.8% premium to the stock's last closing price.
"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.
The combined platform will have a presence in more than 20 countries and territories and generate nearly $7.5 billion in revenue.
Grant Thornton plans to separate CBIZ's benefits and insurance services segment into a new entity backed by New Mountain Capital after the deal closes, which is expected in the fourth quarter of 2026.
Goldman Sachs advised CBIZ on the transaction. Deutsche Bank is the lead financial adviser for Grant Thornton Advisors.
(Reporting by Arasu Kannagi Basil in Bengaluru; Editing by Tasim Zahid)
