CBIZ, Inc. (NYSE:CBZ) acquired Substantially all of the assets from Marks Paneth LLP for approximately $160 million on January 6, 2022. The initial purchase price for the acquisition consisted of approximately $81.25 million in cash paid at closing, subject to a customary working capital adjustment. In addition to the purchase price paid at closing, the purchase agreement also provides for an earnout of up to a maximum of $75.25 million (consisting of cash and shares of CBIZ common stock), which is payable if and to the extent that the future performance of the Acquired Assets following the closing exceeds agreed targets on the each of the first, second and third anniversaries of the closing (the Earnout ). CBIZ agreed to issue up to approximately $7.52 million in its shares of common stock as part of the Earnout (representing 10% of the Earnout). The transaction is expected to add approximately $138 million of revenue to CBIZ in 2022. The transaction is subject to due diligence, regulatory approval and approval under the HSR Act. 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. Ronald A. Stepanovic of Baker & Hostetler LLP acted as legal advisor for CBIZ, Inc. and Russell Shapiro of Levenfeld Pearlstein acted as legal advisor for Marks Paneth in the transaction.
CBIZ, Inc. (NYSE:CBZ) completed the acquisition of Substantially all of the assets from Marks Paneth LLP on January 6, 2022.