BDO USA has agreed to acquire Horne LLP, a Jackson, MS-headquartered accounting and consulting firm.
Founded in 1962, Horne has over 1,300 people across offices in Alabama, Florida, Louisiana, Mississippi, North Carolina, Washington, DC, and Puerto Rico. The top-40 CPA firm has nearly $300 million in annual revenue.
Horne works with clients in government, healthcare, construction, franchise operations, and financial services. The firm specializes in disaster recovery and federal compliance services for state, local, and Puerto Rico government clients. The practice, which helps government leaders set up processes and structures for community improvement during disaster recovery, accounts for approximately two-thirds of Horne’s revenue.
BDO’s acquisition of Horne will significantly expand its Southeastern presence and its government services capabilities. The deal, which is slated to close on November 1, is the largest in BDO USA’s history.
The mid-market firm will grow to $3.2 billion and challenge Baker Tilly’s position as the sixth-largest CPA firm in America.
BDO will create a new subsidiary – BDO Government Services LLC – which will comprise Horne’s government services practices in the continental US and Puerto Rico.
The Horne acquisition will add the Puerto Rican government to BDO’s client roster. The Horne team in Puerto Rico has more than 130 people.
“Like BDO USA, HORNE has built a culture focused on helping people, clients, and communities thrive,” said Wayne Berson, CEO of BDO USA. “We are thrilled to have fueled our largest expansion to date through the advantages created by our employee stock ownership plan.”
BDO in 2023 obtained $1.3 billion in debt financing from private capital group Apollo Global Management to buy a minority stake from BDO partners and create an employee stock ownership plan (ESOP).
"BDO’s leadership in creating an ESOP demonstrates their commitment to team members and solidifies the trust that the public has placed in our profession. Joining BDO USA provides our people and clients with greater resources, capabilities, and solutions, expanding our ability to meet evolving needs and deliver even greater value to the organizations and communities we serve,” said Rusty Butcher, CEO and managing partner of Horne.
Butcher will join BDO as a board member and principal.
Financial terms of the transaction were not disclosed.
Sourced from Consultancy-us