CLEVELAND - CBIZ, Inc. (NYSE: NYSE:CBZ), a national provider of financial, insurance, and advisory services, has announced a definitive agreement to acquire the non-attest business of Marcum LLP. This acquisition is expected to elevate CBIZ to the position of the seventh-largest accounting services provider in the United States, with an estimated $2.8 billion in annual revenue.
The transaction, which involves a cash-and-stock deal valued at approximately $2.3 billion, will see roughly half of the consideration paid in cash and the remainder in shares of CBIZ common stock. Concurrently, the attest business of Marcum will be acquired by Mayer Hoffman McCann P.C., which has been administratively linked with CBIZ for over 25 years.
Marcum, founded in 1951 and based in New York City, is currently the 13th-largest accounting firm in the U.S. with $1.2 billion in revenue and more than 3,500 professionals. The firm operates 43 offices across key U.S. markets and serves over 35,000 clients, offering a variety of professional services.
CBIZ President and CEO Jerry Grisko highlighted the significance of the transaction, stating that it will not only solidify the company's market presence but also enhance their service offerings and expertise.
The closing of the deal is anticipated in the fourth quarter of 2024, subject to approval by CBIZ stockholders, Marcum's partners, and customary closing conditions. The acquisition is expected to be accretive to CBIZ's adjusted earnings per share in 2025, with an estimated 10% contribution.
This strategic move is aimed at strengthening CBIZ's position in the market, accelerating growth, and providing a wider array of services to clients. It also underscores the company's commitment to innovation and technology investment, which is expected to drive efficiency and performance.
InvestingPro Insights
As CBIZ, Inc. (NYSE: CBZ) gears up for its transformative acquisition of Marcum LLP's non-attest business, the company's financial metrics and market performance provide valuable insights into its current standing and potential future trajectory. With a market capitalization of approximately $3.75 billion and a trailing twelve-month revenue of $1.63 billion reflecting a growth of 10.58%, CBIZ showcases a robust financial profile. However, the company's P/E ratio stands at 30.05, indicating a premium valuation compared to the industry average.
Analysts monitoring CBIZ have recently revised their earnings expectations downwards for the upcoming period, an InvestingPro Tip that suggests potential headwinds or a conservative outlook on the company's performance. Additionally, the stock's Relative Strength Index (RSI) points to an overbought territory, which may signal a pullback or consolidation phase ahead.
On the positive side, CBIZ has demonstrated strong returns, with a one-year price total return of 62.64%, showcasing investor confidence and market approval of the company's growth strategy and operational execution. Moreover, the company's liquid assets surpass its short-term obligations, indicating financial resilience and the ability to meet its immediate financial commitments.
Investors and stakeholders considering CBIZ's stock in light of the upcoming acquisition can find additional insights and InvestingPro Tips, with 19 more listed on the platform, providing a comprehensive analysis of the company's financial health and market position.
For those looking to delve deeper into CBIZ's financials and market performance, the InvestingPro platform offers a wealth of data and expert analysis to inform investment decisions. The platform's fair value estimate of $59.29 for CBIZ stock provides a benchmark for investors to assess the stock's current trading price against potential intrinsic value.
The strategic acquisition of Marcum LLP's non-attest business is a significant move for CBIZ, and the InvestingPro Insights offer a snapshot of the company's financial standing as it embarks on this new chapter. With the deal expected to close in the fourth quarter of 2024, investors will be watching closely to see how this acquisition impacts CBIZ's market presence and financial performance in the years to come.
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