Kansas City, Mo. H&R Block Inc. on Monday said it would buy American Express' tax and business services division for $220 million.
The company, when combined under H&R Block's RSM McGladrey subsidiary, would have $1.05 billion in revenue, making it the fifth-largest accounting firm in the country.
Meanwhile, the Kansas City, Mo.-based tax preparer also on Monday restated its earnings for 2003 and 2004, cutting them by more than $91 million - far more than previous estimates.
The restatement, reported in a filing to the Securities and Exchange Commission, equals a decrease of 50 cents per share.
H&R Block announced the American Express deal after the markets closed Monday. Shares lost 36 cents to $56.60 on the New York Stock Exchange. Shares have traded in a 52-week range of $45.13 to $60.
Chairman and chief executive officer Mark Ernst has said he wanted to reposition RSM McGladrey to target mid-sized businesses that he feels are ignored by the major accounting firms.