Ryan is selling a “significant minority stake” in the Dallas tax services firm to one of Wall Street’s largest investment firms, Ares Management Corp.
The undisclosed investment amount, announced Thursday, brings Ryan’s valuation to $2.5 billion, according to a joint statement from Ryan and Onex Corp., a previous investor in the company.
The companies did not say whether the management team of Ryan, Onex or Ares owns the majority stake. The transaction with Ares, which had $325 billion in assets under management as of March 31, is expected to close later this year.
Toronto-based Onex spent $317 million in 2018 to buy a 42% stake in Ryan, which the company said gave it a valuation of $1.1 billion at the time.
Ryan, which generated an estimated $630 million in revenue in 2020, describes itself as the largest company devoted exclusively to business taxes. It has more than 18,000 customers in 60 countries and employs 3,500 people.
“Ares is a great partner for our business because of its experience helping large enterprises drive technology transformation and long-term growth,” CEO and Co-Founder G. Brint Ryan said in a statement. “We have been on a growth trajectory with recent strategic acquisitions, the expansion of several key practice areas and the addition of some of the world’s most respected companies to our already impressive client list.”
Ryan’s goal is to create a global tax brand and it has grown aggressively through acquisitions.
This year alone, it has secured deals with Boston-area property tax consultancy Greystone Property Tax Advisors, UK tax clawback specialist Catax, property tax consultancy Marvin F. Poer and Company, historic tax credits advisory firm MacRostie Historic Advisors and Houston. -motor fuel excise tax specialist Tax Advisory Services Group.