Tax technology solutions provider, Vertex, has announced the acquisition of ecosio, a B2B integration provider specializing in electronic data interchange (EDI) and e-invoicing.
The acquisition supports a unified goal to speed up global commerce by offering a scalable platform that automates business transactions and streamlines indirect tax reporting and e-invoicing compliance. As real-time and near real-time digital tax reporting mandates become more common, e-invoicing is quickly becoming an essential requirement for businesses operating across multiple international jurisdictions.
The integrated solution will help companies overcome challenges related to geographic expansion and enhance the efficiency of their compliance and reporting processes.
“Over the past 40 years, Vertex has been a trailblazer in the field of indirect tax, continuously evolving and pursuing new growth opportunities for our world-class customers. By acquiring ecosio’s advanced technology and their team’s extensive e-invoicing and EDI experience, we are committed to delivering a differentiated global compliance solution that simplifies both e-invoicing and VAT complexities. E-invoicing has emerged as one of the most rapidly growing challenges confronting global businesses, and with several large economies soon to adopt new requirements it makes this transaction a logical next step for Vertex to unlock additional value for our customers,” said Vertex CEO David DeStefano of the acquisition.
“This new endeavor with Vertex is a strategic move that will significantly enhance our ability to deliver exceptional value to our customers,” said Christoph Ebm, Managing Director of ecosio. “Our shared vision for the future and commitment to growth makes this alignment an ideal fit. By combining our complementary products and mutual values, we’ll create new opportunities and expand our global reach.”
Under the terms of the agreement, the acquisition includes an upfront cash payment of $69 million as well as a targeted earn-out of $76 million in cash and $35 million of Vertex shares, based on ecosio achieving certain financial performance targets over the next three years.
Closing is subject to Austrian regulatory approvals and expected to conclude by the end of the third quarter of 2024.
