CLEVELAND, Jan. 10, 2022 /PRNewswire/ -- CBIZ, Inc. (NYSE:
CBZ) ("the Company"), a leading provider of financial, insurance
and advisory services, announced today that it has acquired the
non-attest assets of Marks Paneth LLP, effective January 1, 2022. Concurrent with this
transaction, Mayer Hoffman McCann P.C., a national independent CPA
firm that works closely with CBIZ, announced the acquisition of the
attest assets of Marks Paneth LLP.
Headquartered in New York City,
with additional offices in Long
Island and Westchester, New
York; Parsippany, New
Jersey; Philadelphia,
Pennsylvania; Washington,
D.C.; and Boca Raton,
Florida, Marks Paneth has over 600 team members and ranks
among the 50 largest accounting firms in the nation and the top 10
in the mid-Atlantic region. Marks Paneth provides a full range of
accounting, tax and consulting services to a wide range of
industries, including real estate; construction; hospitality and
restaurants; non-profits; government and healthcare; manufacturing;
wholesale and distribution; theater; media and entertainment.
The transaction is expected to add approximately $138.0 million of revenue to CBIZ in 2022.
Eliminating the impact of the transaction related costs and first
year integration costs, the contribution to earnings per share in
2022 is expected to be approximately $0.10, growing to a range of $0.20 to $0.25 by
2025, after all remaining transition related integration costs are
addressed. On a GAAP reported basis the transaction is
expected to have minimal impact on earnings per share in 2022, but
is expected to be significantly accretive after first year
transaction and integration costs are incurred. Eliminating the
impact of transaction costs and first year integration costs,
EBITDA in 2022 is expected to be within a range of 11% to 12% of
revenue, growing to a range of 16% to 18% of revenue by 2025.
Jerry Grisko, president and CEO
of CBIZ, stated, "The New York
metro area, Philadelphia and
Boca Raton, Florida, continue to
be important markets for CBIZ and we are delighted to be adding
Washington, D.C. to our national
footprint for Financial Services. We are also excited about the
enhanced value that we can now provide to our collective clients
through an expanded breadth of services and depth of expertise. The
addition of Marks Paneth creates scale to better serve a number of
very attractive industries nationwide, including the real estate
and not-for-profit industries. We look forward to welcoming the
Marks Paneth team to CBIZ."
Abe Schlisselfeld, managing
partner of Marks Paneth, stated, "Joining CBIZ provides us with an
excellent opportunity to leverage the diverse service offerings
necessary to address the growing needs of our clients. Our clients
will have the ability to benefit from CBIZ's team of talented
professionals and the resulting synergies and entrepreneurial
spirit will benefit our partners and staff with enhanced leadership
and growth opportunities. We are thrilled to join CBIZ and
are excited about the growth this will afford the combined
firms."
Allan D. Koltin, CEO of the
Koltin Consulting Group, which advised both firms on the
transaction, stated, "In this acquisition, both CBIZ and Marks
Paneth found a partner with unique strengths that are complementary
to each other. The size and scope of this combination will bring
immediate value to existing clients, bolster CBIZ's already stellar
reputation and create significant opportunities for growth now and
in the future."
CBIZ will host a conference call with investors to discuss its
overall M&A strategy and the Marks Paneth acquisition on
Wednesday, January 12, 2022 at
10:00 AM EST. Shareholders and
analysts who would like to participate in the call can register at
https://dpregister.com/sreg/10162878/f093b080f2 to receive the
dial-in number and unique personal identification number. An
archived replay of the webcast will be available on the Company's
website following the call.
About CBIZ
CBIZ, Inc. is a leading provider of financial, insurance and
advisory services to businesses throughout the United States. Financial services include
accounting, tax, government health care consulting, transaction
advisory, risk advisory, and valuation services. Insurance services
include employee benefits consulting, retirement plan consulting,
property and casualty insurance, payroll, and human capital
consulting. With more than 100 Company offices in 31 states, CBIZ
is one of the largest accounting and insurance brokerage providers
in the U.S. For more information, visit www.cbiz.com.
Forward-Looking Statements
Forward-looking statements in this release are made pursuant to
the safe harbor provisions of the Private Securities Litigation
Reform Act of 1995. Such forward-looking statements are subject to
certain risks and uncertainties that could cause actual results to
differ materially from those projected. Such risks and
uncertainties include, but are not limited to, the risk that the
anticipated benefits and perceived advantages of the acquisition
may not be achieved; the impact of COVID-19 on the Company's
business and operations and those of our clients; the Company's
ability to adequately manage and sustain its growth; the Company's
dependence on the current trend of outsourcing business services;
the Company's dependence on the services of its CEO and other key
employees; competitive pricing pressures; general business and
economic conditions; and changes in governmental regulation and tax
laws affecting the Company's insurance business or its business
services operations. A more detailed description of such risks and
uncertainties may be found in the Company's filings with the
Securities and Exchange Commission at www.sec.gov.
View original
content:https://www.prnewswire.com/news-releases/cbiz-acquires-marks-paneth-llp-301457048.html
SOURCE CBIZ, Inc.