US accounting firms BKD and DHG have jointly announced an agreement that will see the two merge to create a new professional services firm with $1.4bn (£1bn) in revenues.
With complementary operations, geographies and nearly two centuries of legacy service between them, the two firms said they will operate under a new firm name that will be announced at a later date.
The new firm will aim to provide “deep industry focus, expanded advisory services, and outstanding career opportunities”, building the foundation required for long-term growth and a stronger national presence with a gateway to global expansion.
It will also have a “significantly larger” national presence and will have more than 5,400 team members across 68 markets in 27 states, including the United Kingdom and the Cayman Islands.
The merger is expected to close in the second quarter of 2022.
Tom Watson, current CEO of BKD, will serve as the CEO of the new organisation; and Matt Snow, current CEO of DHG, will serve as the chair.
Watson said: “For years, both BKD and DHG have built strong reputations as high-value, professional client service firms. We’ve established complementary geographic footprints and strong capabilities in a range of critical service sectors.
“Together, as one organisation, we will deepen our bench strength even further, allowing us to continue to serve our existing client base while also providing the resources necessary to serve an ever-increasing upstream client base.”
Snow added: “I couldn’t be more thrilled to join forces with BKD. The scale of our combined firms, our collective talent and similar cultures will translate to tremendous benefits for our clients and team members.
“Both of our firms have an overlapping industry focus in healthcare, financial services and private equity, coupled with other industry sectors where each legacy firm is individually strong. As one organisation, we will be able to bring our capabilities to a broader range of clients, providing more innovative, client-centric services to the market.”