Baker Tilly South East Europe (BTSEE) on Monday confirmed the completion of its merger with professional services firm MHA, in a deal valued at €24 million.

This follows an announcement originally made on August 11, 2025, to the London Stock Exchange (LSE).

MHA, which has 23 offices across the United Kingdom, Ireland and the Cayman Islands, had first signalled its intention to merge with BTSEE on May 7, 2025.

BTSEE is a provider of audit, tax, advisory, legal and corporate solutions, with 12 partners and more than 400 professionals operating from seven offices across Cyprus, Greece and the wider South-East Europe region.

The firm reported revenues of €19.4 million in 2024, supported by a compound annual growth rate of 9 per cent over the past four years.

Under the terms of the agreement, MHA will pay 90 per cent of the initial €20 million equity value through €5.4 million in cash and €12.6 million in new ordinary shares, equivalent to 10,862,069 shares.

The remaining 10 per cent will be settled in additional shares, which vendors will contribute to the company’s Employee Benefit Trust after completion account adjustments.

A final balancing payment, comprising cash and shares, will depend on net debt and working capital adjustments.

The company said that all consideration shares will be subject to lock-in and clawback arrangements, in line with those applied to MHA partners at IPO.

Application has been made for the new shares to be admitted to trading on AIM on August 12, 2025.

Following admission, MHA will have 282,073,833 ordinary shares in issue, with no shares held in Treasury.

The acquisition is expected to be earnings-enhancing within the first full financial year after completion.

“As we noted during our recent stock market listing, strategic partnerships are a central pillar of our medium-term growth,” said Rakesh Shaunak, Chief Executive Officer of MHA.

“The completion of the merger with Baker Tilly South East Europe is a pivotal step for MHA’s presence in mainland Europe,” he added, saying that he is “especially pleased to welcome our new colleagues into the MHA family”.

He also said that the deal “aligns directly with our strategy stated at IPO to expand our international footprint, including the potential to bring other members of the Baker Tilly International Network into the Group where an opportunity arises”.

Shaunak further stated that BTSEE is “an excellent fit, providing us with an immediate and significant presence in Continental Europe and enabling us to further expand our footprint in key strategic locations”.

“With the formalisation of the agreement with MHA, a new chapter of growth is opening for Baker Tilly South East Europe in the region,” said Marios A. Klitou, the newly appointed Chairman of Baker Tilly South East Europe.

“Our aim is to strengthen our activity in the field of financial services and public interest entities,” he continued. “Very soon we will also have new announcements concerning the expansion of our services, as well as our physical presence in Cyprus and Greece.”

He added that “joining forces with MHA marks an exciting milestone for our firm, underpinned by a shared culture and outlook that made the decision a natural one.”

He also stressed that with strong foundations in place, the partnership would quickly deliver meaningful benefits for clients and staff.

“Further exciting news on developing our scope of services and our physical footprint in Cyprus and Greece will follow shortly,” he said.

The merger comes shortly after MHA reported its combined results for the year ending March 31, 2025, covering the period immediately prior to its IPO on April 15, which raised £98 million.

The offering was the largest AIM IPO of 2025 and the biggest in the professional services sector for five years.

The firm recorded growth across all offices, sectors and service lines, with Shaunak saying that “our growth has been based upon, and will continue to be driven by, favourable market drivers linked to increasing and more complex regulation and extended compliance and oversight requirements in many industries”.

“These results reflect the success of our highly focused and market facing business sector approach, effective cross selling strategies, the adoption and development of enhanced technology and AI in driving efficiencies and quality, and most of all the efforts and quality of an exceptional team of staff and partners, without whom our success would not have been possible,” he added.

The acquisition of BTSEE marks the next stage of MHA’s expansion into mainland Europe, taking its total headcount to 2,350 people, including 153 partners and 30 offices.

Artificial intelligence is at the heart of MHA’s current and future growth strategy, with the firm adopting a measured and responsible approach to new technologies that meet its standards for cost, maturity and suitability.

The company is using automation in personal and corporate tax to streamline document processing and report generation, and is piloting tools such as ChatGPT Enterprise and Microsoft Co-Pilot to support research, planning and drafting.

Around 50 per cent of MHA’s people now use AI or automation tools, with 30 per cent having received formal role-specific training.

Reflecting on the company’s trajectory, Shaunak said “these results reflect a year of strong progress for MHA, capped shortly after the period end by our successful IPO – a landmark moment for the firm”.

“Having evaluated all options, we are confident that we have chosen the right path for MHA, with the IPO also allowing everyone in the firm the opportunity to participate in our expected future growth. The establishment of an Employee Benefit Trust is an example of the inclusive approach we promote across the group,” he added.

“Our successful IPO,” he continued, “has already delivered tangible benefits, including a stronger balance sheet, incentivised partners, greater profile with clients, acquisition targets and the market generally, and the ability to invest in technology and talent at greater pace.”

“We are pleased to be trading in line with our expectations for FY26,” Shaunak explained.

“While market conditions remain demanding, the trends driving our profession are firmly in our favour,” he added.

“With a clear strategy, a strong balance sheet and an exceptional team, I am confident that we are well placed to deliver on the commitments we set out at IPO and to build a business of even greater scale and quality in the years ahead,” he concluded.