Grant Thornton LLP has sold its public sector advisory practice to Guidehouse, a consultancy owned by private equity fund Veritas Capital.
The move is part of Chicago-based Grant Thornton's strategy of divesting some of its practice niches to focus more on audit, tax and advisory services. Guidepost will be gaining professionals in Washington, D.C. and other cities who have experience providing federal, state and local governments with finance, human-capital management, information technology, data analytics and performance management services.
"Grant Thornton continues to accelerate its growth by delivering the highest-quality solutions and a peerless experience to our clients," said Grant Thornton CEO Seth Siegel in a statement Monday. "The divestiture of our public sector advisory practice is well-aligned with our strategy and will enhance our value to clients by sharpening the firm's focus on our integrated offerings across audit, tax and advisory services, where we see significant growth opportunities. Additionally, we will further enhance our capital position, strengthen the firm's quality-focused market position and create compelling opportunities for our colleagues."
Financial terms of the deal, which is expected to close in the second half of the year, were not disclosed. Grant Thornton ranked No. 7 on Accounting Today's 2022 list of the Top 100 Firms, with over $1.9 billion in annual revenue.
The deal also comes at a time when accounting firms are seeing a wave of capital from private equity firms, with firms such as EisnerAmper, Citrin Cooperman, Cherry Bekaert, Schellman and others receiving funding from the PE industry.
Guidehouse provides consulting services to both the public sector and private sector, specializing in management, technology and risk consulting. The firm has more than 13,000 professionals in over 50 locations around the world. Grant Thornton anticipates approximately 1,000 of its professionals will transition from Grant Thornton Public Sector Advisory to Guidehouse.
"We are excited to welcome our new colleagues to Guidehouse, building on the strength of our model, continued innovation, and driving the best outcomes for our clients," said Guidehouse CEO Scott McIntyre in a statement. "This transaction aligns to our strategy to expand expertise and capabilities in support of our clients' most pressing challenges. With this strategic combination, we anticipate experiencing opportunities for both significant growth and advancement for our colleagues."
The law firm Morrison Foerster advised Grant Thornton on the deal.
