San Antonio-based Padgett Stratemann (FY15 net revenue of $34.8 million) is merging into Chicago-based RSM, formerly known as McGladrey, the biggest national accounting firm outside the Big 4.
RSM (FY16 net revenue of $1.85 billion) today announced the signing of a definitive agreement to acquire Padgett Stratemann, with the deal expected to close Aug. 16.
The move will establish RSM offices in San Antonio and Austin and add scale to its presence in Houston. The combination will create the fifth-largest firm in Texas, with 700 people in Austin, Dallas, Houston and San Antonio.
“By joining forces with Padgett Stratemann, RSM has the opportunity to more broadly serve middle market businesses in Texas,” says Joe Adams, MP and CEO of RSM US LLP. “Padgett Stratemann shares our client-centric approach to doing business with a focus on building enduring, trusted relationships. The depth and breadth of our Texas practice will be a major force in the market, creating opportunities for the clients and people at both firms.”
Padgett Stratemann, founded in 1945, has 225 professionals and expertise in the construction, manufacturing/retail/distribution, financial institutions, financial services, energy, state and local government, and government contracting industries. The two firms have been connected for 21 years through the McGladrey Alliance, a business of RSM US LLP, which is ranked No. 5 on the 2015 IPA 100 list.
“By joining forces with RSM, we are taking the natural next step in our growth strategy and our relationship with RSM,” says John Wright, MP for Padgett Stratemann. “We’re pleased to join a firm that offers our clients and employees expanded resources, opportunities and global capabilities, while maintaining a small-firm culture and a strong commitment to the communities where we live and work.”
Kevin Prien, RSM’s central region MP says, “Padgett Stratemann’s outstanding professionals, strong industry niches and great clients will strengthen our momentum in Texas and beyond.”