West Hartford-based blumshapiro to merge with national firm
West Hartford-based blumshapiro, the largest regional accounting and advisory firm based in New England, said Thursday it will merge with a national firm that was seeking a stronger presence in the Northeast.
Bl u mshapiro wi l l combine with CliftonLarsonAllen LLP as of Jan. 1, and the blumshapiro name will be retired after 40 years. Terms of the transaction were not disclosed, and blumshapiro executives declined comment in an interview Thursday.
Bl u mshapiro n ow employs 550 — about 225 in Connecticut — in three offices in Connecticut, five in Massachusetts, one in Rhode Island and one in Virginia. The firm has about $100 million in annual revenue.
After the merger, all of blumshapiro’s offices will remain open, with the exception of two in Massachusetts that may be combined, Joseph Kask, the firm’s chief executive, said.
Kask said he expects all the firm’s accountants and other advisers will retain their positions but there could be some job cuts among administrative and “back office” workers where there is overlap with CLA. Of the 550 blumshapiro employees, about 80 are support staff.
Kask will stay with the combined firms, leading operations in New England and New York as managing principal.
The combined firms will have 7,000 employees in more than 130 locations across 31 states. CLA has its roots in the Midwest dating back 60 years.
Kask said the combination had nothing to do with the pandemic, or the economic landscape that has been shaken in 2020. Both firms were “doing well” financially, Kask said.
Discussions about a potential combination heated up over the summer as CLA, with $1.2 billion in annual revenue, was looking to beef up its presence in New York and New England.
“I don’t think either one of us were really looking,” Kask said. “The conversation came up. It just continued to grow and we got very excited about the opportunity for our people, our clients and our communities.”
Kask said the combination of the two firms was a “natural fit” because they both focus on individual and family-owned businesses, nonprofits and government clients as well as private equity.
CLA is expected to expand blumshapiro’s expertise in asset management, investment advisory and cybersecurity security services.
“With the addition of the blum team, our ability to retain talent increases exponentially,” Denny Schlepler, CLA’s chief executive, said, in a news release. “It’s a tremendous advantage for our clients, underscoring our commitment to create inspired careers with channels for growth, success and personal satisfaction.”