Accountancy firms BDO and PKF today announced they are in advanced discussions to merge in the early part of 2013.

The merger would see some 3,500 people working in the UK under the new firm, generating revenues approaching £400m. It would represent the first proactive strategic merger in the UK accountancy market for 15 years.

A spokeswoman for BDO told Civilsociety.co.uk that the new firm will be a member of BDO International, under the BDO brand, and that it expects to announce further news later in the year.

Simon Michaels, managing partner of BDO, commented: “Our two firms share a closely-aligned vision to lead in the mid-market, as well as similar cultures and a commitment to deliver exceptional client service. The merged firm will have a strong balance sheet, as well as unrivalled sector and geographic strength in many areas.

“The PKF team will enhance and complement our offerings to clients, bringing consulting expertise along with wide experience across audit, tax and advisory arenas. This exciting development demonstrates that both firms are ambitious for growth.”

Martin Goodchild, managing partner at PKF (UK), added: “This is a good strategic decision for both firms who have a desire to lead, from a position of strength, the inevitable consolidation of the mid–tier which is long overdue.

“PKF has built a strong national business dealing with a wide range of clients, particularly entrepreneurs and listed companies but including other markets such as public sector and not for profit. This combination will ensure a strong profitable business, creating opportunities for all of our people and our clients, as it will enable them to benefit from new expertise and increased global reach.”