Fintech
Wolters Kluwer Acquires Accounting Portfolio from Belgian Fintech Isabel
July 29, 2024
Written by FinTech Alliance in Financial Technology
Wolters Kluwer Tax & Accounting (TAA) has announced the acquisition of the accounting portfolio of Belgian fintech Isabel Group for €325 million in cash. This portfolio includes several cloud-based financial workflow and data exchange solutions, such as CodaBox, ClearFacts, Clearnox, Zoomit and Flowin. These solutions are designed to streamline client collaboration and meet e-invoicing compliance needs for accounting firms and their clients across Europe.
– Wolters Kluwer’s acquisition of Isabel Group’s accounting portfolio aims to accelerate digital transformation in the tax and accounting industry. This move is in line with their vision to improve productivity, manage change and deliver better results for tax and accounting professionals and businesses of all sizes.
– The acquired solutions complement Wolters Kluwer’s existing European tax and accounting services, offering end-to-end coverage from pre-accounting to post-accounting processes. The integration will include over 130 employees from Belgium and France, expanding Wolters Kluwer’s operations to ten European countries.
– In 2023, the acquired solutions generated gross revenues of €34 million, of which 90% were recurring. The acquisition is expected to achieve a return on invested capital equal to or greater than Wolters Kluwer’s post-tax weighted average cost of capital (8%) by the fifth year of ownership. The immediate financial impact on Wolters Kluwer’s adjusted earnings is expected to be minimal, with the transaction expected to close in the second half of 2024 pending regulatory approvals.
“The need to accelerate digital transformation to meet client needs is critical,” said Jason Marx, CEO of Wolters Kluwer Tax & Accounting. “Isabel Group’s portfolio of leading accounting solutions aligns perfectly with our vision of enabling tax and accounting professionals and businesses of all sizes to drive productivity, manage change and deliver better results. This acquisition, which complements the services we provide to Wolters Kluwer clients today, will provide innovative platforms that will deepen collaboration between accountants and SMBs.”