CLA acquires AI company

CliftonLarsonAllen, a Top 10 Firm, has acquired Engine B, a London-based company that helps accounting firms get more insights from their clients' data, effective May 1.

The deal represents CLA's first acquisition abroad, although in 2022, it formed a multinational network called  CLA Global Limited in collaboration with Evelyn Partners, a U.K.-based wealth management group. Last year, CLA CEO Jen Leary told Accounting Today about further international expansion for the CLA Global in Asia, based in Singapore, along with member firms in Mexico, Germany, Poland, the Czech Republic, India and Slovakia. She also noted that CLA has rolled out inhouse artificial intelligence technology called CLA GPT. The move to acquire Engine B seems to be part of that expansion. The acquisition accelerates CLA's $500 million investment in digital technology and AI. 

"CLA is investing in the future of our people, of our clients and our profession," Leary said in a statement Thursday. "With the addition of Engine B, CLA is becoming a force for positively disrupting the profession, creating a path for our professionals to spend more time directly with clients, leaning into our promise to know and help them. Engine B's generative AI-powered technology aligns closely with our vision of leveraging digital solutions to drive operational excellence and deliver greater value to our clients."

Engine B was founded in 2019 by Shamus Rae and Donne Burrows, a pair of professional services executives who developed AI tools to help firms access standardized client data. 

"This connection is the right step for Engine B and for CLA," said Rae in a statement. "Our technology will seamlessly integrate into CLA's existing systems and give us all a head-start in ingesting client information and extracting clear data sets to provide strategic client initiatives. For both firms, this is a strategic step toward growing revenue while further investing in our professionals." 

CLA plans to bring aboard the entire Engine B team, which has 38 staff members, while integrating its professionals and technology. CLA has approximately 9,000 employees. By harnessing Engine B's capabilities, CLA anticipates it will be able to enhance activities with its current client base, while also innovating the way we serve new client opportunities.  

Financial terms of the deal were not disclosed. CLA ranked No. 8 on Accounting Today's 2024 list of the Top 100 Firms, with $2 billion in annual revenue.

CLA plans to harness Engine B's capabilities to improve activities with its current client base and add new client opportunities.  

"At CLA, we are early adopters, staying ahead of industry trends, always looking to enhance the services and solutions we provide to our clients," said CLA board chair James Watson in a statement. "The automation capabilities that Engine B brings to the table will enable us to redirect valuable time toward client engagement while pursuing new business opportunities."

Last week, CLA announced it had acquired Ronald Blue and Co, a tax, audit and accounting firm with offices in Atlanta, Georgia; Tempe, Arizona; Knoxville, Tennessee; and Santa Ana, California, effective May 1. Last year, CLA acquired Richard, Witt & Charles in Garden City, New York;  Frost & Co. in Tacoma, Washington; and Gilmore Jasion Mahler in Toledo and Findlay, Ohio. In 2022, CLA did a number of mergers and acquisitions, including with Hayashi Wayland in Salinas, California, Concannon Miller in Florida and Pennsylvania, and Price CPAs in Nashville, Tennessee.