CBIZ (NYSE: CBZ) agrees Grant Thornton buyout as profit jumps 56.7%

What happened

CBIZ, Inc. (NYSE: CBZ) reported third-quarter revenue of $702.2 million and said Grant Thornton will acquire it. The all-cash deal values CBIZ at $5.0 billion, or $55.00 per share. CBIZ said the deal is expected to close in the fourth quarter of 2026. It also said it will not provide full-year 2026 guidance or host a third-quarter conference call because of the proposed transaction. Grant Thornton is backed by New Mountain Capital.

For the quarter, net income rose to $47.2 million from $30.1 million a year earlier. Diluted EPS rose to $0.79 from $0.48. Adjusted EBITDA was $131.9 million, up 6.3%. Revenue rose 1.2% to $702.2 million. Nine-month revenue reached $2.23 billion, compared with $2.21 billion a year earlier. Nine-month net income rose to $218.6 million from $194.9 million. Operating cash flow also improved to $147.1 million from $48.8 million over the period.

Key numbers

Metric	Latest	Change	Source
Proposed transaction enterprise value	$5.0 billion		Proposed transaction
Third-quarter revenue	$702.2 million	from $693.8 million, +1.2%	Third-quarter financial highlights
Third-quarter net income	$47.2 million	from $30.1 million, +56.7%	Third-quarter financial highlights
Third-quarter GAAP EPS	$0.79	from $0.48, +64.6%	Third-quarter financial highlights
Nine-month revenue	$2.23 billion	from $2.22 billion, +0.8%	Nine-month financial highlights
Nine-month Adjusted EBITDA	$479.3 million	from $485.1 million, -1.2%	Nine-month financial highlights

Read more: CBIZ (CBZ) stock analysis and investment case

Why it matters

OptimistFi's case is that CBIZ works if its national middle-market advisory platform turns scale and acquired practices into recurring, cash-generative client relationships without losing talent or margin discipline. The filing is mixed for that view. Nine-month revenue rose by $17.7 million year over year, but nine-month Adjusted EBITDA slipped 1.2% to $479.3 million. The business grew, but profit did not keep pace with sales.

The quarter was stronger on profit. Net income rose 56.7% and GAAP EPS rose 64.6%. Revenue also rose 1.2% in the third quarter, and Financial Services revenue rose 1.2% in the period. The deal still carries closing risk because it depends on shareholder, regulatory and other approvals.

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What's next

The proposed transaction is expected to close in the fourth quarter of 2026, subject to CBIZ shareholder approval, required regulatory approvals and other customary closing conditions. If it closes, CBIZ common stock will no longer be listed on the New York Stock Exchange and CBIZ will become a private company.

A delay would keep the approval and regulatory conditions in play. The next dated event is the expected close in the fourth quarter of 2026.

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