Blackline has announced the acquisition of intercompany accounting technology solution provider, FourQ.
The $165M purchase (plus earn out considerations of up to $75M subject to meeting performance milestones over the next 3 years) will boost Blackline’s existing intercompany automation provision, and add tax and statutory reporting compliance capabilities to its financial operations management platform.
Intercompany accounting has been neglected for years by many businesses, but with M&As now commonplace resulting in ERP and system complexities, plus the increasing regulations on tax and cross-border transactions, it’s an area that has been thrust into the limelight recently.
Varun Tejpal, co-founder and CEO of FourQ will now serve as Managing Director, Intercompany at BlackLine. Of the merger he commented, “FourQ and BlackLine share a vision to help optimize customers’ global operations for greater profitability and efficiency while freeing F&A teams to focus on strategic aspects of their business. I look forward to reducing the headaches caused by messy intercompany accounting processes and further cementing BlackLine’s market-leading position as we join forces to help customers continue to advance their intercompany journeys.”
“Intercompany accounting is one of the biggest distractions for finance and accounting for multinational corporations. Hard to believe, but most companies are still using legacy, repetitive and manual processes to manage intercompany, exposing their businesses to unnecessary costs, significant compliance risks, and missed working capital and tax opportunities,” said Marc Huffman CEO at Blackline. “F&A must become more agile to respond to constantly evolving market dynamics and regulatory needs—but they're often buried in tactical transactional work and intercompany disputes. Intercompany challenges are not new but with increasingly complex global business models and regulatory scrutiny, demand for intercompany transformation is higher than ever.”
For more on intercompany accounting:
- Discover why It’s Time to Stop Ignoring Intercompany
- Listen to Bjorn Bergabo, former Chief Operating Officer of GE Operations share why Automating Intercompany is Not as Hard as You Think
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