M&A roundup: CohnReznick and U.K. firms expand

CohnReznick, a Top 25 Firm based in New York, has bought the construction monitorship and public sector forensic investigations division of Exiger, a software-as-a-service company also based in New York. 

The staff and contracts from the group are joining CohnReznick's government advisory practice. Financial terms of the deal were not disclosed. CohnReznick ranked No. 16 on Accounting Today's 2023 list of the Top 100 Firms, with $900 million in annual revenue.

The acquisition will give CohnReznick more government-focused expertise in internal audit, construction audit, engineering, Minority or Women-Owned Business Enterprises compliance program reviews and investigations, and project management. The deal comes at a time when CohnReznick's public sector and public-private partnership advisory work is seeing significant growth, particularly due to the national funding of projects by the Infrastructure Investment and Jobs Act.

CohnReznick has considerable experience in offering compliance, monitoring and oversight services to help federal, state and local agencies protect taxpayer dollars earmarked for government-funded projects. Last year, the firm announced a deal to provide integrity monitoring for a redevelopment project at JFK Airport in New York (see story).

"Our government advisory clients look to our team to provide them with the highest level of integrity monitoring and compliance services for major, highly regulated projects. These include large public construction, natural disaster recovery, and many other projects," said Frank Banda, managing partner of government and public sector advisory at CohnReznick, in a statement Wednesday. "Integrating the team and resources from Exiger with the outstanding team we already have in place deepens our bench strength and broadens our capabilities during a time when many clients are seeking our assistance with infrastructure funding. We're also proud to be expanding our airport integrity monitoring work as a result of this transaction, including new work from an existing client and the addition of a major international airport on the East Coast."

In March, CohnReznick expanded in Florida by adding Daszkal Bolton, a Regional Leader headquartered in Boca Raton, effective March 1. CohnReznick also added BKM Sowan Horan in Dallas last October and Kevin P. Martin and Associates in October 2021.

Last month, Exiger signed an agreement with the consulting firm Capgemini for the sale of its financial crime compliance division. 

DJH Mitten Clarke, a firm based in Stoke-on-Trent, U.K., completed three strategic acquisitions in September, strengthening its presence in the North-West and Yorkshire areas of England.

The acquisitions involved Huddersfield firm Revell Ward, Nantwich practice Lyon Griffiths, and Haines Watts' Altrincham office, expanding its array of small and midsized enterprise clients.

Financial terms of the deals were not disclosed. "This trio of acquisitions reinforces our commitment to building our business through partnerships with culturally aligned firms and investment into their team through training, development and wellbeing," said 

DJH Mitten Clarke CEO Scott Heath in a statement Monday. "Our people-first and tech focused approach will allow us to enhance and tailor our solutions to empower businesses and build relationships in the SME marketplace. As we continually look for new ways to heighten our services and support to both existing and new clients across the group, each new partner brings its own strengths. Revell Ward delivers a market leading customer journey and experience, Lyon Griffiths provides us with a new probate service line, whilst Haines Watts Altrincham has unrivaled knowledge and experience within the education sector."

The trio of acquisitions come after DJH Mitten Clarke received private equity funding from Tenzing last November. DJH Mitten Clarke formed in 2021, after the merger of two Staffordshire firms, Mitten Clarke and DJH. The firm has made seven acquisitions in a two-year period, growing its team from 120 to over 370. 

In February, DJH Mitten Clarke acquired Novis & Co., headquartered in Leeds, U.K. and in April it acquired Morris & Co., in Chester. Last month, it acquired an accounting firm that specializes in dentist clients, Minford Dental. 

"Joining forces with Revell Ward, Lyon Griffiths and Haines Watts Altrincham further strengthens our foothold in the North-West and Yorkshire," said M&A director Richard Crook in a statement. "With offices already in Stoke, Manchester, Chester, Leeds, Sheffield and Walsall, the alignment of locations in Huddersfield, Nantwich and Altrincham, extends our presence, ensuring clients across the region benefit from continued exceptional service."

OD Accountants, an accounting firm based in Shoreditch, U.K., has acquired Probusiness, an accounting firm based in Wells, Somerset, adding specialist tax services to its offerings.

Probusiness has grown over the past 20 years locally, regionally and nationally and experienced an increase in its London-based clients using its specialist tax team.

ODA has clients in the clean energy and tech, creative, media and digital industries and focuses on cloud-based accounting solutions.

"Acquiring Probusiness provides an exciting opportunity to combine OD Accountant's specialism in Software as a Service accountancy systems and digital accountancy applications with the skills and experience of the Probusiness team in particular given its focus on delivering specialist tax services, something our existing South East clients are increasingly wanting," said OD Accountants founder Niall O'Driscoll in a statement last week. "It was vital to identify the right company to support our growth aspirations, one that would not only complement our existing SaaS approach but provide enhanced levels of service for our clients here in the Shoreditch area. Being able to offer a highly experienced and specialist tax team takes us to a new level in terms of service capability in the South East and in turn enables us to expand across the South West by providing our range of cutting-edge, innovative cloud-based digital finance tools, applications and services which have been a critical part of our growth here in Shoreditch over the past 10 years."

Financial terms of the deal were not disclosed. However, a spokesperson for OD Accountants confirmed that staff numbers have doubled to 14, turnover is forecast to grow threefold with the added capacity from the acquisition, and the purchase of Probusiness will make it a wholly owned subsidiary of OD Accounting.  

Martin Bowe, who founded Probusiness over decades ago, said it was important for him to find a new owner who shared his outlook.

 "What was clear from the very earliest discussions with Niall is that he is passionate about his team, his clients and delivering accountancy services that make a positive difference. This is the approach that we have taken from day one at Probusiness and it was vitally important for me to find that match," Bowe said in a statement. "Niall clearly values what Probusiness does and how it does it and both businesses bring something new and beneficial to each other respectively in terms of the specialist tax services for ODA and cloud-based services for Probusiness."