US accounting and business services firm, H&R Block, is acquiring the tax & business services division of American Express for approximately...

US accounting and business services firm, H&R Block, is acquiring the tax & business services division of American Express for approximately $220 million. The newly acquired business will be combined with H&R Block's RSM McGladrey Business Services subsidiary. The combined firm will have more than $1 billion in annual revenue which will place it within the top five accounting and business services firms in the US. It will operate under the RSM McGladrey brand and employ more than 5,000 accounting professionals. As well as having a sizeable wealth management unit, the new entity will be the largest tax, accounting and business services firm focused on serving midsized companies in the US. The sale by American Express is part of the company's strategy to concentrate on its global payments, network services and related businesses, according to Ed Gilligan, group president, global corporate services at American Express International.