Twenty four months after a landmark acquisition by H&R Block of KSM Business Services, Inc., an agreement in principle has been reached to sell the subsidiary back to the partners of Katz, Sapper & Miller for $25 million.
KSM Business Services was formed in 1998 to allow H&R Block to acquire the non-attest assets of the 48th largest CPA firm in the USA, Indianapolis-based Katz Sapper Miller.
KSM Business Services was the third of seven regional accounting firm acquisitions made by H&R Block prior to its acquisition of the non-attest assets and business of McGladrey & Pullen, LLP, the seventh largest accounting firm in the USA.
H&R Block accelerated its acquisition efforts after acquiring McGladrey, and has been successful in integrating its firms under the RSM McGladrey brand.
"KSM Business Services preferred to retain its autonomy, however, and we respect their decision," said Frank L. Salizzoni, Chairman and CEO of H&R Block.
It is expected that the sale of the assets of KSM Business Services back to Katz Sapper & Miller will be completed in the next few weeks.