Vertex Acquires ecosio To Accelerate Global E-Invoicing Compliance
Vertex, Inc. (NASDAQ: VERX) has announced the acquisition of ecosio, a leading B2B integration provider specializing in electronic data interchange (EDI) and e-invoicing. The acquisition, pending Austrian regulatory approval, aims to create a single, scalable platform for automating business transactions and managing indirect tax reporting and e-invoicing compliance. The deal includes an upfront cash payment of $69 million and a targeted earn-out of $76 million in cash and $35 million in Vertex shares.
This strategic move is expected to expand Vertex's market opportunity, advance its international growth strategy, and deliver a seamless, end-to-end compliance platform. ecosio is anticipated to contribute approximately $15 million in revenue in the first 12 months post-closing, although it will be modestly dilutive to profitability in the first two years before becoming accretive in the third full year after closing.
Vertex, Inc. (NASDAQ: VERX) ha annunciato l'acquisizione di ecosio, un importante fornitore di integrazione B2B specializzato in scambio elettronico di dati (EDI) e fatturazione elettronica. L'acquisizione, in attesa dell'approvazione normativa austriaca, mira a creare una piattaforma unica e scalabile per automatizzare le transazioni commerciali e gestire la dichiarazione dell'imposta indiretta e la conformità alla fatturazione elettronica. L'affare include un pagamento in contanti iniziale di 69 milioni di dollari e un earn-out previsto di 76 milioni di dollari in contanti e 35 milioni di dollari in azioni Vertex.
Questa mossa strategica è destinata a espandere le opportunità di mercato di Vertex, a promuovere la sua strategia di crescita internazionale e a fornire una piattaforma di conformità fluida e completa. Si prevede che ecosio contribuirà con circa 15 milioni di dollari di fatturato nei primi 12 mesi successivi alla chiusura, anche se avrà un modesto effetto diluitivo sulla redditività nei primi due anni, prima di diventare accrescitivo nel terzo anno intero dopo la chiusura.
Vertex, Inc. (NASDAQ: VERX) ha anunciado la adquisición de ecosio, un proveedor líder de integración B2B especializado en intercambio electrónico de datos (EDI) y facturación electrónica. La adquisición, a la espera de la aprobación regulatoria austriaca, tiene como objetivo crear una plataforma única y escalable para automatizar transacciones comerciales y gestionar la declaración de impuestos indirectos y el cumplimiento de la facturación electrónica. El acuerdo incluye un pago inicial en efectivo de 69 millones de dólares y una ganancia objetivo de 76 millones de dólares en efectivo y 35 millones de dólares en acciones de Vertex.
Este movimiento estratégico se espera que amplíe la oportunidad de mercado de Vertex, avance su estrategia de crecimiento internacional y entregue una plataforma de cumplimiento fluida de principio a fin. Se anticipa que ecosio contribuirá con aproximadamente 15 millones de dólares en ingresos en los primeros 12 meses posteriores al cierre, aunque será modestamente dilutivo para la rentabilidad en los dos primeros años antes de volverse accretivo en el tercer año completo después del cierre.
Vertex, Inc. (NASDAQ: VERX)가 전자 데이터 교환(EDI) 및 전자 청구서 발행을 전문으로 하는 B2B 통합 제공업체 ecosio의 인수를 발표했습니다. 오스트리아 규제 당국의 승인을 기다리고 있는 이번 인수는 비즈니스 거래를 자동화하고 간접세 신고 및 전자 청구서 발행 준수를 관리하기 위한 단일 확장 가능한 플랫폼을 만드는 것을 목표로 합니다. 이번 거래는 6,900만 달러의 초기 현금 지급과 7,600만 달러의 목표 성과금과 3,500만 달러의 Vertex 주식으로 이루어져 있습니다.
이 전략적 이동은 Vertex의 시장 기회를 확대하고 국제 성장 전략을 추진하며 원활한 종합 준수 플랫폼을 제공합니다. ecosio는 거래 종료 후 첫 12개월 동안 약 1,500만 달러의 수익을 기여할 것으로 예상되지만 초기 2년 동안은 수익성에 다소 희석 효과가 있을 것이며 거래 종료 후 세 번째 전체 연도에는 증가세로 돌아설 전망입니다.
Vertex, Inc. (NASDAQ: VERX) a annoncé l'acquisition d'ecosio, un fournisseur de premier plan en matière d'intégration B2B spécialisé dans l'échange de données électroniques (EDI) et la facturation électronique. L'acquisition, en attente de l'approbation réglementaire autrichienne, vise à créer une plateforme unique et évolutive pour automatiser les transactions commerciales et gérer la déclaration de la taxe indirecte ainsi que la conformité à la facturation électronique. L'accord comprend un paiement initial en espèces de 69 millions de dollars et un earn-out cible de 76 millions de dollars en espèces et 35 millions de dollars en actions Vertex.
Ce mouvement stratégique devrait élargir l'opportunité de marché de Vertex, faire avancer sa stratégie de croissance internationale et fournir une plateforme de conformité fluide, de bout en bout. On s'attend à ce qu'ecosio contribue environ 15 millions de dollars de revenus au cours des 12 premiers mois suivant la clôture, bien qu'il ait un effet légèrement dilutif sur la rentabilité au cours des deux premières années avant de devenir accretif dans la troisième année complète après la clôture.
Vertex, Inc. (NASDAQ: VERX) hat die Übernahme von ecosio bekannt gegeben, einem führenden B2B-Integrationsanbieter, der sich auf den elektronischen Datenaustausch (EDI) und elektronische Rechnungsstellung spezialisiert hat. Die Übernahme, die noch der Genehmigung durch die österreichischen Aufsichtsbehörden bedarf, zielt darauf ab, eine einheitliche, skalierbare Plattform zur Automatisierung von Geschäftstransaktionen und zur Verwaltung der indirekten Steuererklärung sowie der Einhaltung der elektronischen Rechnungsstellung zu schaffen. Bei dem Deal handelt es sich um eine Vorauszahlung in Höhe von 69 Millionen US-Dollar sowie eine angestrebte Earn-Out-Zahlung von 76 Millionen US-Dollar in bar und 35 Millionen US-Dollar in Vertex-Aktien.
Dieser strategische Schritt wird voraussichtlich die Marktchancen von Vertex erweitern, die internationale Wachstumsstrategie vorantreiben und eine nahtlose End-to-End-Compliance-Plattform bereitstellen. Von ecosio wird erwartet, dass es in den ersten 12 Monaten nach dem Abschluss etwa 15 Millionen US-Dollar an Einnahmen beiträgt, obwohl es in den ersten zwei Jahren moderat die Rentabilität verwässern wird, bevor es im dritten vollständigen Jahr nach dem Abschluss einen positiven Beitrag leisten wird.
- Expansion of market opportunity in the growing e-invoicing sector
- Anticipated revenue contribution of $15 million from ecosio in the first 12 months
- Creation of a comprehensive global solution for indirect tax reporting and Continuous Transaction Controls
- Potential for increased revenue growth through deeper customer relationships
- Expected to be accretive to profitability in the third full year after closing
- Modestly dilutive to profitability in the first two years after closing
- Significant upfront cash payment of $69 million required
- Additional R&D investments needed for product integrations and enhancements
Insights
The acquisition of ecosio by Vertex for
- Expected revenue contribution of
$15 million in the first year post-closing - Modest dilution to profitability in the first two years due to R&D investments
- Anticipated profitability accretion by the third full year
While the short-term impact on profitability is negative, the long-term potential for revenue growth and market expansion makes this a calculated risk for Vertex. The transaction aligns with the trend of increasing tax compliance complexity, potentially driving demand for Vertex's expanded services.
Vertex's acquisition of ecosio is a strategic technological integration that addresses the growing need for automated tax compliance solutions. The merger combines Vertex's indirect tax expertise with ecosio's e-invoicing and EDI capabilities, creating a comprehensive platform for global compliance. Key technological benefits include:
- Integration of cloud-based, scalable global network
- Enhanced capabilities for creating, exchanging and clearing compliant e-invoices
- Improved reconciliation with periodic filing requirements
This technological synergy positions Vertex to better serve multinational corporations facing increasingly complex tax reporting mandates. The combined solution should streamline compliance operations and facilitate geographic expansion for clients, potentially giving Vertex a competitive edge in the tax technology market.
The acquisition of ecosio by Vertex is a timely market move given the rapid growth of e-invoicing mandates globally. This transaction positions Vertex to capitalize on several market trends:
- Increasing prevalence of real-time and near real-time digital tax reporting mandates
- Growing complexity of VAT reporting requirements across jurisdictions
- Rising demand for solutions that simplify cross-border commerce and compliance
The e-invoicing market represents a significant growth opportunity, driven by legislative changes and the need for efficient compliance solutions. By integrating ecosio's capabilities, Vertex is poised to offer a more comprehensive solution, potentially increasing its market share and customer retention. This move could also serve as a defensive strategy against competitors entering the e-invoicing space, solidifying Vertex's position as a leader in tax technology solutions.
Delivering a Seamlessly Connected Global Platform to Manage Continuous Compliance
KING OF PRUSSIA, Pa., Aug. 07, 2024 (GLOBE NEWSWIRE) -- Vertex, Inc. (NASDAQ: VERX) (“Vertex” or the “Company”), a global provider of tax technology solutions, today announced the acquisition of ecosio, a leading B2B integration provider specializing in electronic data interchange (EDI) and e-invoicing. The closing is pending customary Austrian regulatory approval.
The acquisition advances a shared vision to accelerate global commerce and deliver a single, scalable platform for automating business transactions and managing indirect tax reporting and e-invoicing compliance. With the increasing prevalence of real-time and near real-time digital tax reporting mandates, e-invoicing is rapidly evolving into a crucial requirement for businesses operating globally, across multiple jurisdictions.
Integrating ecosio’s cloud-based, scalable global network with Vertex’s best-in-class indirect tax solutions will enable customers to facilitate the creation, exchange, and clearance of jurisdictionally compliant e-invoices and seamlessly reconcile these invoices with their periodic filing requirements. The combined solution will aid companies in overcoming obstacles to geographic expansion and improve the efficiency of their compliance and reporting operations.
“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,” said Vertex CEO David DeStefano. “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.”
Continuous compliance has become a difficult task for businesses due to the proliferation of VAT reporting requirements and e-invoicing mandates across Europe and the world. The combination of Vertex and ecosio will result in a comprehensive global solution with reliable, end-to-end indirect tax reporting and Continuous Transaction Controls (CTC) capabilities to mitigate the risk of noncompliance. This streamlines the entire compliance lifecycle from tax determination and periodic reporting with complex CTC requirements and automated B2B communication.
“This new endeavor with Vertex is a strategic move that will significantly enhance our ability to deliver exceptional value to our customers,” said ecosio Managing Director Christoph Ebm. “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.”
Strategic and Financial Benefits of the Proposed Acquisition
Under the terms of the agreement, the acquisition includes an upfront cash payment of
Closing is subject to local regulatory approvals and expected to take place by the end of the third quarter of 2024.
Vertex believes acquiring ecosio will provide significant benefits to stakeholders of the combined company, including:
- Significantly Expands Market Opportunity: The e-invoicing market is large and growing, fueled by legislation and an increasingly complex compliance environment for companies to navigate. By extending its leadership into e-invoicing through the acquisition of ecosio, Vertex expects to expand its market opportunity with considerable upside opportunities as the Company helps customers navigate evolving compliance mandates globally.
- Advances International Growth Strategy: Today, ecosio directly supports Continuous Transaction Controls (“CTC”) and B2G mandates globally. The business’ opportunity is rapidly expanding as new countries have currently adopted or are expected to adopt CTC mandates. To address these requirements, customers are seeking solutions that simplify their returns and reporting processes. Vertex expects to capitalize on this demand by leveraging ecosio’s e-invoicing solutions for existing customers and as an entry point for new customer acquisition.
- In-Demand, Strategically Aligned Solutions to Manage Tax Compliance in the Digital Era: CTC and e-invoicing are key components in streamlining compliance processes and ensuring timely and accurate reporting. Through this transaction, Vertex will deliver a seamless, end-to-end compliance platform with a scalable, highly available open business network that will enable continuous compliance.
- Growth and Financial Impact: The transaction is expected to unlock additional value as the combined company supports customers at more points through their compliance and electronic data interchange processes globally. Vertex expects that deepening and expanding customer relationships will drive increased revenue growth. ecosio is anticipated to contribute approximately
$15 million in revenue in the first 12 months post-closing. Due to incremental R&D investments in product integrations, enhancements, and additional e-invoicing country support, ecosio will be modestly dilutive to profitability in the first two years after closing. The transaction is expected to be accretive to profitability in the third full year after closing.
Visit here to learn more about Vertex’s e-invoicing solution.
Advisor
Centerview Partners LLC acted as a financial advisor to Vertex in connection with the transaction.
About Vertex
Vertex, Inc. is a leading global provider of indirect tax solutions. The Company’s mission is to deliver the most trusted tax technology enabling global businesses to transact, comply and grow with confidence. Vertex provides solutions that can be tailored to specific industries for major lines of indirect tax, including sales and consumer use, value added and payroll. Headquartered in North America, and with offices in South America and Europe, Vertex employs over 1,400 professionals and serves companies across the globe.
For more information, visit www.vertexinc.com or follow us on Twitter and LinkedIn.
Forward Looking Statements
Any statements made in this press release that are not statements of historical fact, including statements about our beliefs and expectations, are forward-looking statements and should be evaluated as such. Forward-looking statements include, among other things, statements about the anticipated benefits of the ecosio acquisition, the timing of completion of the ecosio acquisition, as well as the information concerning possible or assumed future results of operations, including descriptions of our business plan and strategies. Forward-looking statements are based on Vertex management’s beliefs, as well as assumptions made by, and information currently available to, them. Because such statements are based on expectations as to future financial and operating results and are not statements of fact, actual results may differ materially from those projected. Factors which may cause actual results to differ materially from current expectations include, but are not limited to: our ability to complete the ecosio on the currently contemplated terms or at all; the outcome of any legal proceedings, regulatory proceedings or enforcement matters that may be instituted relating to the anticipated acquisition; the costs incurred to consummate the ecosio acquisition; the possibility that the expected benefits from the acquisition will not be realized, or will not be realized within the expected time period; difficulties related to the integration of the two companies; disruption from the ecosio acquisition making it more difficult to maintain relationships with customers, employees, regulators or suppliers; the diversion of management time and attention on the anticipated acquisition; adverse changes in the markets in which Vertex and ecosio operate; our ability to sustain and expand revenues, maintain profitability, and to effectively manage our anticipated growth; our ability to maintain and expand our strategic relationships with third parties; and the other factors described under the heading “Risk Factors” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023 as filed with the Securities Exchange Commission (“SEC”), as may be subsequently updated by our other SEC filings. Copies of such filings may be obtained from the Company or the SEC.
All forward-looking statements reflect our beliefs and assumptions only as of the date of this press release. We undertake no obligation to update forward-looking statements to reflect future events or circumstances.
Contacts:
Vertex
Investor Relations contact:
Joe Crivelli
Vertex, Inc.
ir@vertexinc.com
Media contact:
Rachel Litcofsky
Vertex, Inc.
mediainquiries@Vertexinc.com
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