MNP, one of the largest accounting firms in Canada, struck a deal Friday with Deloitte to acquire a significant portion of Deloitte’s business in Canada by March 1.
As part of the deal, approximately 70 Deloitte partners and senior leaders, nearly 900 team members and close to 25 offices will join MNP, formerly known as Meyers Norris Penny. The transition will occur in selected parts of the Canadian provinces of British Columbia, Alberta, Saskatchewan, Manitoba, Ontario and Quebec, all of which are provinces where both firms have offices. Financial details were not disclosed.
The deal occurs amid an ongoing wave of mergers and acquisitions in the accounting profession since the start of the year. While deal activity slowed in the first half of 2020 due to the pandemic, MA transactions bounced back strongly in the second half of 2020 and now in early 2020. The deal activity has been strong in the U.S., and now has spilled into Canada as well.
“MNP is a homegrown Canadian firm that was established in 1958,” said MNP CEO Jason Tuffs in a statement. “With the addition of the new offices we will have 126 offices from coast to coast, including in the largest urban centers, mid-sized cities and the smaller rural cities and towns we find across all provinces.”
He sees it as a strategic addition for MNP, allowing the firm to substantially build its presence in Quebec. The deal will add approximately 20 offices across the province, augmenting MNP’s existing presence in Montreal and Laval. MNP will also add new offices in Windsor and Hawkesbury, in the province of Ontario.
Some details of the arrangements are still being finalized. “We’re not disclosing the exact financial terms of the deal,” said MNP vice president of marketing Nick Greenfield. “As for the numbers of people and offices, that is being finalized and we’ll have an answer after March 1.” The deal is also subject to approval by the Canadian Competition Bureau.
Both Deloitte and MNP have been informing their clients and staff about the impending changes. “Our primary concern is what is best for our clients, people and partners,” said Deloitte Canada CEO Anthony Viel in a statement. “We continuously evaluate opportunities to adjust our market focus and find innovative ways to help growing organizations, dealing with complex issues, with our wide scope of services and global footprint, in all regions of Canada.”
Deloitte ranked in first place on Accounting Today’s 2020 list of the Top 100 Firms. The firm reported $47.6 billion in global revenue for fiscal year 2020. MNP’s annual revenue is estimated to be $776.38 million USD by Dun Bradstreet.