Consulting Sector M&A Deals for week beginning 17th November

businessman doing handstand on the beachDermody, Burke & Brown, CPAs, LLC (USA) to merge with Kane, Bowles & Moore, PC (USA)
Deal Size: Unspecified Industry: Financial advisory Date: November 2014
Effective January 1, 2015, Kane, Bowles & Moore, P.C., a Liverpool-based accounting and consulting firm, will merge with Dermody, Burke & Brown, CPAs, LLC, one of the largest locally owned and independent CPA firms in Central New York, and will operate under the Dermody, Burke & Brown name. The combination of these two high caliber firms will enhance client service capabilities by providing additional resources and expanded services. Dermody, Burke & Brown and Kane, Bowles & Moore share a similar foundation and commitment to the clients and community they serve. “We are proud of our Upstate New York roots and this merger positions us to be part of the economic growth taking place in our community,” says Madelyn Hornstein, CPA, CEO of Dermody, Burke & Brown. “This is a way for us to support our clients, their growth and the development of this region – now and in the future.” Dermody, Burke & Brown, CPAs, LLC (DB&B) is a certified public accounting firm.

McGladrey LLP (USA) to acquire substantially all of the assets of Cole & Reed, P.C. (USA)
Deal Size: Unspecified Industry: Financial advisory Date: November 2014
McGladrey LLP, the nation’s leading provider of assurance, tax and consulting services focused on the middle market, announced the signing of a definitive agreement to acquire substantially all the assets of Cole + Reed, P.C., an Oklahoma City-based firm and member of the McGladrey Alliance, subject to the terms and conditions of the transaction. The transaction provides McGladrey with a presence in Oklahoma City, making the firm the leading provider of assurance, tax and consulting services focused on the middle market in Oklahoma. “By joining forces with Cole + Reed, McGladrey has the opportunity to more broadly serve middle market businesses in Oklahoma,” said Joe Adams, managing partner and CEO of McGladrey. “The depth and breadth of our Oklahoma practice will be a major force in the market, creating opportunities for our clients and our people. We look forward to welcoming Cole + Reed team members, who have an excellent reputation for understanding their clients’ needs and providing quality, responsive service.” Serving Oklahoma businesses for more than 60 years, Cole + Reed P.C. is one of the largest full-service public accounting firms in Oklahoma and the surrounding region, providing audit and assurance, tax planning and compliance, consulting and accounting services. McGladrey LLP is the leading U.S. provider of assurance, tax and consulting services focused on the middle market, with more than 7,000 professionals and associates in more than 75 cities nationwide.

Keyser (USA) to merge with Chermack Consulting Group, LLC (USA)
Deal Size: Unspecified Industry: Engineering consulting Date: November 2014
Chermack Consulting Group, a Scottsdale-based, full-service project management firm representing global clients throughout the Southwest, announced its agreement to merge with Keyser to lead Keyser’s rapidly growing project management division. Founder Jonathan Keyser tells GlobeSt.com, “Our company continues to grow rapidly and the demand for our services increases. Tom Chermack and I have been in talks for about six months; we need leaders to help build our team. Tom’s firm and his team have a proven track record. We needed the resources of the team, but also the leadership.” Chermack, founder of CCG, will head up the project management division. “We will provide full service support working with transaction brokers, advancing the process for a seamless transaction. Our approach has always been to focus as much on the people we serve as the ‘sticks and bricks.’ The parallel that exists between CCG’s and Keyser’s core principles creates the perfect platform for establishing a dominant project management team that will continue to provide unmatched client representation across the globe.” Chermack Consulting Group, LLC provides owner representation services on various commercial developments throughout the Southwest. Keyser Co., a commercial real estate advisory company, provides real estate services to tenants and buyers of office, retail, medical, educational, and industrial space.

O’Connor Davies, LLP (USA) acquired Grubman Anand, P.C. (USA)
Deal Size: Unspecified Industry: Financial advisory Date: November 2014
O’Connor Davies, LLP, one of the nation’s fastest growing accounting and consulting firms, announced its expansion into the Washington D.C. metro area with the acquisition of Grubman Anand, P.C., auditing and tax specialists of affordable housing properties. Consistently ranked among Accounting Today’s “Top 100 Firms,” O’Connor Davies is in the midst of an unprecedented growth period, having expanded from 399 professionals to more than 550 in the past 24 months. This is the latest in a series of strategic acquisitions as the firm expands its geographic reach to meet the growing demand for specialised accounting expertise backed by the resources of a national firm. “O’Connor Davies is growing quickly through strategic partnerships with highly specialised firms that bring the deep expertise our clients demand while aligning with the values and culture that have helped set us apart for years,” said O’Connor Davies Managing Partner Kevin J. Keane. “We recognise that in today’s dynamic market, you can’t sacrifice depth for breadth and provide the value clients expect or meet the high standard we’ve set for ourselves. Our ability to identify top performers and provide them with support and proven processes has been the key to our ability to scale quickly and stay ahead of the needs of U.S. and global clients.” O’Connor Davies, LLP is a full service Certified Public Accounting and consulting firm that has a long history of serving clients both domestically and internationally and providing specialised professional services of the highest quality.

BDO Seidman, LLP (USA) entered into an agreement to acquire UHY Advisors, Inc. (USA)
Deal Size: Unspecified Industry: Financial advisory Date: November 2014
BDO USA LLP has entered into an agreement to acquire Top 100 Firm UHY Advisor’s Texas practice. The UHY Texas practice provides a range of financial and consulting services to a diversified client base in the energy, manufacturing, distribution, professional services, health care and real estate sectors. The new addition will bolster BDO’s presence in Houston and Dallas. “We are now adding a very prominent energy sector group, with a specialty in upstream and oil field services,” BDO CEO Wayne Berson said in an interview with Accounting Today. “One of the focus areas for us worldwide is in the natural resources practice. We always look at what the futurists are saying and what the GDP is in each of the major areas to see what are the other areas we really want to invest in. One of the hottest markets in the country today is certainly Houston. That’s why we worked so hard to get a deal done in Houston. Upon completion of this transaction, we will be the dominant alternative to the Big Four in both the Texas and the national energy markets,” BDO has been on an acquisition spree for the last two years. In May 2014, it tapped into Texas when it added the Fort Worth, Texas-based regional accounting firm Hartman Leito & Bolt. In June 2014, BDO picked up several more firms located in Alaska, Minnesota and the Northeast. About a week prior to its UHY Texas deal BDO added Ohio-based Top 100 Firm SS&G Inc. UHY Advisors, Inc. offers financial accounting and business advisory services to middle-sized and large companies. BDO Seidman, LLP provides accounting and financial advisory services.

Maner Costerisan CPA (USA) to merge with McCartney & Company, P.C (USA)
Deal Size: Unspecified Industry: Financial advisory Date: November 2014
The accounting firms of McCartney & Company, P.C. and Maner Costerisan recently announced a merger. Maner Costerisan is a mid-market accounting and consulting firm located in Lansing, Michigan. As an Independent Member of BDO Alliance USA, Maner Costerisan has full access to the national and worldwide resources of one of the largest accounting and consulting firms in the world. “We view this merger as a significant benefit for clients of both firms, as well as for our employees,” said Jeffrey Stevens, CPA, CITP, and President of Maner Costerisan. “Combining our resources and knowledge base is a tremendous win for our clients.” Jeffery Irwin, CPA, President of McCartney & Company, P.C. echoed the sentiment by saying, “Our first priority has always been to provide the best service possible to our clients. We feel confident that this merger enhances our ability to fulfill this objective, as well as giving us the opportunity to more effectively serve as a trusted advisor to our clients.” McCartney & Company, P.C. provides auditing, accounting, tax and consulting services.

MNP LLP (Canada) agreed to acquire Reimer & Co. (Canada)
Deal Size: Unspecified Industry: Financial advisory Date: November 2014
Reimer & Co. Chartered Accountants, a Swan River-based accounting firm, will merge with MNP LLP, one of Canada’s largest national accounting and business consulting firms, effective January 1, 2015. Reimer & Co. was looking for an opportunity to offer more specialty services to its clients, while MNP was looking to expand in the Manitoba region. Operating for the past 15 years, Reimer & Co. provides services including accounting, audit, tax and business advisory to business owners and organisations in a wide variety of sectors including Agriculture, Logging, Retail, Manufacturing, First Nations, Not-for-Profit and Government. With our newly expanded presence in Ottawa, MNP now has over 80 offices and a team of more than 3,000 from Montreal to Victoria. MNP is one of the largest national accounting and consulting firms in Canada, providing client-focused accounting, taxation and consulting advice.

Nelson (USA) acquired EHS Design (USA)
Deal Size: Unspecified Industry: Engineering consulting Date: November 2014
In a move that marks 2014 as a record-setting year, global Design, Architecture, Engineering and Consulting Services firm NELSON has acquired EHS Design. This is the fifth merger for NELSON in 2014 and marks a year-end revenue growth of 60% for the firm – ranking them at the very top of the industry’s high growth firms. This move significantly expands NELSON’s reach into the western United States, anchored by a new hub office in Seattle, Washington. Founded by Jack Emick and Mindy Howard in 1977, EHS Design developed an impressive client list and reputation through dedication to their clients and a unique and empowering culture. Rapid success ensued, and with the firm merging with Paul Seibert & Associates in 1992, continued its evolution into a full-service design firm with emphasis on corporate interiors and architecture for retail, financial, civic, government and multi-family residential clients. “Our vision for NELSON has led to just under 30 mergers throughout the past 14 years,” said John “Ozzie” Nelson Jr., Chairman and CEO of NELSON. “This progression achieves one of NELSON’s goals to continue to expand our services to new strategic geographies. EHS’s ability to quickly move into action and respond to clients’ needs with our network of nearly 500 Teammates will bring significant opportunities on a national scale. There is a natural synergy with NELSON’s established services and practice areas, including financial, retail and corporate. EHS contributes significant multi-family residential and healthcare experience, substantially advancing our efforts in what are growing specialty areas for NELSON.” EHS Design provides interior design, architecture, branding, engineering, strategies and workplace services.

Accruent, LLC (USA) acquired VFA, Inc. (USA)
Deal Size: Unspecified Industry: IT consulting Date: November 2014
Accruent reported that it has acquired Boston-based VFA, a provider of solutions for facilities capital planning and asset management. According to a release from the company, VFA’s cloud software solutions and consulting services enable customers to assess their real estate portfolios, allocate capital, and make better decisions to support their organisations’ mission and strategy. “We believe this combination is of strategic significance to our customers and the broader facilities market,” said Accruent chief executive officer Mark Friedman. “For several years, Accruent has pursued an acquisition strategy designed to address the fragmentation of real estate and facilities software solutions. By combining the management of the facilities operating and capital budgets, the two primary needs of all facilities executives, we now provide a unified enterprise solution combining world-class cloud software and consulting services for facilities strategy, planning, management, and operations.” VFA, Inc. provides strategic facilities capital planning solutions, Web-based software products, and business consulting services. Accruent, LLC provides real estate and facilities management software solutions to retailers, Fortune 500 organisations, service providers, universities, and wireless carriers in the United States and internationally.

Cognizant Technology Solutions Corp. (USA) completed the acquisition of TriZetto Corporation (USA)
Deal Size: Unspecified Industry: Healthcare IT consulting Date: November 2014
Cognizant, a global leader in information technology, consulting and business process services, announced it has completed the acquisition of TriZetto Corporation. “The combination of TriZetto’s market-leading platforms with Cognizant’s strengths in consulting, IT and business process services will put us at the forefront of creating new models for the healthcare needs of tomorrow,” said Francisco D’Souza, CEO of Cognizant. “Together, we are uniquely positioned to deliver end-to-end solutions that allow healthcare organisations to improve operational efficiency, drive innovation and embrace next generation delivery models made possible by digital technologies. As a fully integrated healthcare technology and operations provider, we look forward to enabling our clients to deliver improved quality of care and superior health outcomes.” TriZetto software manages the health benefits of close to half the insured population of the U.S. and supports about a quarter of all U.S. care providers. The company is now a part of Cognizant’s healthcare practice whose clients include 16 of the top 20 U.S. health plans, and four of the top five pharmacy benefit management companies. The combination of the Cognizant and TriZetto platform and capabilities will enable healthcare organisations to focus on making their operations as efficient as possible, while at the same time investing to drive future growth in an increasingly competitive environment. TriZetto Corporation provides information technology and service solutions for health plans, benefits administrators, care providers/physicians, payer clients, hospitals, and healthcare systems. Cognizant Technology Solutions Corporation provides information technology (IT), consulting, and business process services worldwide.

Xerox Corporation (USA) to acquire Intrepid Learning Solutions, Inc. (USA)
Deal Size: Unspecified Industry: Management / Strategy consulting Date: November 2014
Xerox announced an agreement that expands its learning portfolio with the acquisition of Intrepid Learning Solutions ‘ learning services to ensure companies’ employees are equipped with the latest skills and knowledge to improve their business performance. “The speed of change in today’s business world means that in order to stay relevant, companies and their employees must be at the top of their game,” said Mark Hill, group executive of Xerox human resource services. “The addition of Intrepid’s expertise to our learning organisation significantly expands our ability to deliver impactful, engaging and comprehensive learning solutions accessible to our customers at the point and time of greatest need.” Xerox is a global business services, technology and document management company helping organisations transform the way they manage their business processes and information. Intrepid Learning Solutions, Inc. offers corporate learning and learning consulting services for businesses worldwide.

Jones Lang LaSalle Incorporated (USA) acquired Coverpoint Foodservice Consultants (UK)
Deal Size: Unspecified Industry: Business consulting Date: November 2014
JLL is expanding its European retail and leisure consulting team with the acquisition of Coverpoint Foodservice Consultants, a Reading-based specialist food and drink industry adviser. Coverpoint was founded in 1993 by managing director Jonathan Doughty. Services offered include commercial and operational performance analysis, benchmarking, standards monitoring and due diligence. “Food and beverage is an offer that is more resilient to the impact of e-commerce and retail polarisation and it adds significant value to user experience in the physical environment,” said James Brown, head of JLL’s European retail and leisure research and consulting team. “Coverpoint has an impressive and unparalleled track-record across the global foodservice industry, from retail real estate investors, to restaurateurs and corporate occupiers, and bringing Coverpoint into JLL will help us meet the growing client demand for this type of consulting service.” Coverpoint Foodservice Consultants Ltd. advises and consults on food and beverage services. Jones Lang LaSalle Incorporated, a financial and professional services company, provides commercial real estate and investment management services worldwide.

BDO Canada LLP (Canada) acquired Cunningham LLP (Canada)
Deal Size: Unspecified Industry: Financial advisory Date: November 2014
BDO Canada LLP is pleased to announce the expansion of its professional practice in Markham, Ontario. Effective January 1, 2015, Cunningham LLP will operate under the BDO name to bring an expanded range of services to the Greater Toronto Area (GTA). With locations in Burlington, Markham, Mississauga, and Toronto, this merger will expand BDO’s presence in the GTA to almost 70 partners and 500 professionals and staff. Cunningham’s five partners and 25 team members will bring in-depth knowledge and experience working with owner-managers, including industry expertise in retail pharmacies and auto dealerships. Mark Goodfield, Managing Partner, stated: “BDO is a like-minded entrepreneurial firm, and this merger enables us to significantly strengthen our ability to serve our clients by providing a greater depth of expertise and access to enhanced service offerings.” Cunningham was established in 1971 and is a full service, mid-market public accounting firm in North Toronto that provides a wide range of services to privately-held companies. In addition to specialized accounting, tax, and business advisory services, the firm helps entrepreneurs meet their personal financial goals with planning solutions for issues such as family succession and retirement. BDO Dunwoody LLP provides auditing, accounting, tax, financial, and management advisory services.

Stone Point Capital LLC (USA) to acquire Oasis Outsourcing, Inc (USA)
Deal Size: Unspecified Industry: HR consulting Date: November 2014
Oasis Outsourcing (Oasis) announced that it has agreed to be acquired by Stone Point Capital and management. Stone Point is a leading private equity firm focused on investing in the global financial services industry. Oasis, a portfolio company of Nautic Partners and Altaris Capital Partners, is the largest private professional employer organization (PEO) in the United States, and is a leading provider of comprehensive and cost-effective human resources (HR) services to small- and medium-sized businesses (SMBs). The transaction, subject to customary closing conditions, is expected to be completed by the end of 2014. Oasis provides HR services, such as HR administration and development, employee benefit plan management, full-service payroll administration, risk management, and staffing and recruitment to more than 4,700 SMBs and more than 160,000 worksite employees (WSEs) in all 50 states and Puerto Rico. Through its nationwide platform, Oasis provides its solutions to clients across a broad spectrum of industries, including business services, hospitality and retail, manufacturing, technology, and wholesale trade, among others. Chuck Davis, CEO of Stone Point Capital, said; “We are delighted to be partnering with Oasis and its management team. The company’s ability to provide cost-effective outsourced solutions while also providing access to affordable benefit plans is very compelling for small- and medium-sized businesses, especially in light of the increasing complexity and regulations related to HR.”

RLJ Equity Partners, LLC, GE Asset Management Incorporated, Madison Capital Funding LLC, RLJ Credit Opportunity Fund and Brookside Mezzanine Partners (all USA) acquired MarketCast, Inc. (USA)
Deal Size: Unspecified Industry: Marketing consulting Date: November 2014
LJ Equity Partners, LLC, an affiliate of The RLJ Companies, announced its acquisition of MarketCast, LLC, a premier provider of strategic insights and analysis to marketers and researchers in the global entertainment industry. RLJ Equity Partners, in alliance with GE Asset Management, acquired MarketCast from Shamrock Capital Advisors, a leading media, communications, and entertainment private equity firm based in Los Angeles. MarketCast works in collaboration with clients across the entertainment spectrum to test and optimize their content, marketing, and distribution strategies. The company maintains long-standing client relationships with all of the major motion picture studios and production companies, as well as a growing number of broadcast, cable, and OTT programmers and networks. Core services, applied worldwide, include testing of marketing materials and messaging as well as strategic research and advisory services related to market positioning, branding, franchise extensions, and sequel development. “MarketCast is globally recognized as a premier entertainment research firm and today’s acquisition by RLJ Equity Partners is an opportunity to invest alongside an experienced team in the growing U.S. entertainment industry,” said Robert L. Johnson, founder of Black Entertainment Television (BET) and Chairman of RLJ Equity Partners. “With its comprehensive audience engagement expertise and full-scale data analytics, MarketCast is uniquely qualified to provide a valuable service to motion picture studios to help grow their audience attendance and enjoyment, both domestic and foreign.”

Altus Group Limited (Canada) agreed to acquire SC&H State & Local Tax, LLC (USA)
Deal Size: Unspecified Industry: Financial advisory Date: November 2014
A Canadian company has reached a deal to acquire Sparks-based SC&H Group Inc.’s state and local tax consulting practice for nearly $40 million. Altus Group Limited’s deal will result in 93 employees changing companies and will give Altus (TSX: AIF) one of the largest property tax advising firms in the country. The cash and equity deal is valued at $38 million. SC&H was not looking for a sale, said CEO Ron Causey. But Altus Group showed persistent interest in the State and Local Tax practice, which helps companies navigate regulations in areas like appraisals, personal property taxes, real property taxes and income taxes. The practice is on pace to produce revenue of $22 million this year. The deal gives SC&H the opportunity to invest financial resources into new services, Causey said. The firm will also be able to expand its efforts in its remaining lines of business: audit and tax advising; consulting; investment banking and advising; and personal financial planning. Altus Group Limited provides commercial real estate consulting and advisory services, and software and data solutions. SC&H State & Local Tax, LLC (SALT) provides tax advisory services.

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