MaloneBailey has merged in local firm John M. Thomas PC, building its presence in the Houston area.

The merger is part of MaloneBailey’s efforts to strengthen its private company practice and construction industry niche in Houston. The merger took effect on May 15.

Thomas’ practice focuses on audits and reviews, as well as tax services for private companies. It will supplement MaloneBailey’s newly formed Private Company Practice Team, led by partners Stan Raines and David Forrest, which is focusing on growing the firm’s audit and tax practice in the Houston area.

"We’re expanding into the local market trying to build a larger practice locally," said MaloneBailey managing partner Wesley Middleton. "We had been talking with John for a while. He had a strong construction industry niche and needed more resources. It was a perfect fit for us."

Middleton expects to do more acquisitions of small firms in the next 12 months. "Finding the right firm is the hard part," he said. "We engaged someone to do market research and find these opportunities as we can." He is especially looking to expand the firm's construction industry and oil and gas industry niches further.

“This merger will bring benefits to the clients and employees of both firms,” said Thomas in a statement. “Our clients will have access to increased levels of service and expertise, and our firms will have additional opportunities for growth and expansion.”

As a partner at MaloneBailey, Thomas will be responsible for client relations, new business development and construction practice growth. Seven additional staff members will join MaloneBailey as part of the merger.

Thomas's practice has annual revenue of about $1.4 million, according to Middleton. The combined firm will have close to $14 million in annual revenue.