Fintech
Wolters Kluwer Acquires Accounting Portfolio from Belgian Fintech Isabel
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- Wolters Kluwer Tax and Accounting (OTCPK:WTKWY) On Monday it announced that it has signed an agreement with Belgian fintech firm Isabel Group to acquire its portfolio of cloud-based accounting solutions for financial workflows and data exchange, for €325 million in cash.
- Wolters Kluwer and Isabel Group have a long-standing and established relationship and partnership.
- More than 130 full-time employees, based in Belgium and France, will join Wolters Kluwer Tax & Accounting Europe, which covers ten countries in Europe.
- In 2023, gross revenues from acquired solutions grew by 23% to €34 million (unaudited). Around 90% of revenues are recurring, with the majority coming from Benelux and France.
- The acquisition is expected to achieve a return on invested capital equal to or greater than Wolters Kluwer’s weighted average cost of capital after taxes (8%) in its fifth full year of ownership.
- In the near term, it is expected to have an insignificant impact on Wolters Kluwer’s adjusted earnings.
- Source: Press release