From Daily Herald news services
Posted Friday, August 05, 2005
RSM McGladrey Business Services, which has its regional headquarters in Schaumburg, will be the third largest accounting and business services firm in the Chicago area following an upcoming merger.
H&R Block Inc. said this week it will buy American Express? tax and business services division for $220 million and combine it with its RSM McGladrey subsidiary. With the 2,500 American Express employees, RSM McGladrey will have 7,000 employees and $1.05 billion in revenue, making it the fifth-largest accounting firm in the country.
H&R Block Chief Executive Mark Ernst is positioning RSM McGladrey to target midsized businesses that he says are ignored by the major accounting firms.
?By combining two of the leading accounting organizations in the profession, we?re creating a firm that is uniquely positioned to meet the demands of the middle market,? Ernst said in a release.
Ernst knows the acquisition target well. He led the division while at American Express from 1989 to 1993 and developed strategy for the business from 1993 to 1997.