Business Accounting

Baker Tilly to acquire accounting tech services company AcctTwo

Baker Tilly, a Top 25 Firm headquartered in Chicago, plans to acquire AcctTwo, a Houston-based technology and services company that specializes in finance and accounting transformation, effective Oct. 1.

By acquiring AcctTwo, Baker Tilly will become one of the leading business partners of Sage Intacct. AcctTwo has been named Partner of the Year for seven years by Sage Intaact. It is both a value-added reseller of Sage Intacct and a managed services provider for the cloud-based accounting vendor, which partners with the American Institute of CPAs. The AcctTwo team will join the growing Baker Tilly Digital practice once the deal is completed.

The deal indicates the growing importance of technology to accounting firms’ growth as clients turn to their accountants for help with recommending and implementing their financial systems.

“We are investing heavily in the digital space to help our clients drive sustainable growth and stay ahead of the technology revolution,” said Baker Tilly consulting managing partner Angela MacPhee in a statement Wednesday. “Together with AcctTwo, Baker Tilly’s end-to-end solutions can meet the needs of businesses in any stage of their life cycle.”

Financial terms of the deal were not disclosed. AcctTwo had $30 million in revenue last year. It has 105 professionals and offices in Houston and Dallas. Baker Tilly earned annual revenues of $1 billion for the fiscal year ending May 31, 2021. The firm has 4,600 professionals, including 450 partners. Baker Tilly ranked 12th on Accounting Today’s 2021 list of the Top 100 Firms. The firm already employs 500 professionals in Texas, including 385 in Dallas, 80 in Houston and 40 in Austin.

“This is a powerful combination where our vision and strategy align,” said AcctTwo founder and CEO Marcus Wagner in a statement. “Being deep in the technology sphere, we wanted a partner with advisory CPA expertise and the same commitment to clients and future growth.”

Sage Intaact sees positive signs in the deal as well. “This is a great outcome for our joint customers,” said Taylor Macdonald, senior vice president of channels for Sage Intacct, in a statement. “This acquisition brings together our seven-time Partner of the Year and one of the most modern advisory CPA firms with global reach and an impressive breadth and depth of expertise.”

Last month, Baker Tilly announced it was acquiring Margolin, Winer & Evens, a Regional Leader firm in New York, effective Nov. 1. Last year, it acquired Squar Milner and Brown Adams Agbayani in California, as well as Talavant, a data analytics firm in Madison, Wisconsin.