Wolters Kluwer N.V. (WTKWY.PK), a prominent Dutch provider of professional information services, announced on Monday that its Tax & Accounting (TAA) division has signed an agreement to acquire the accountancy portfolio of Belgian fintech firm Isabel Group. The acquisition, valued at €325 million in cash, includes a suite of cloud-based financial workflow and data exchange solutions.
The company anticipates that this investment will yield a return on invested capital at or above its after-tax weighted average cost of capital (8%) by the fifth year of ownership. In the short term, however, the transaction is expected to have a negligible effect on Wolters Kluwer's adjusted earnings.
Subject to regulatory approvals and standard closing conditions, the acquisition is projected to be finalized in the latter half of 2024. The purchase involves acquiring CodaBox, ClearFacts, Clearnox, Zoomit, and Flowin.
Wolters Kluwer highlighted that these platforms facilitate the secure and efficient transfer of bank statements, invoices, and other critical data, thereby enhancing client collaboration. These solutions are trusted by over 8,000 accounting professionals, as well as 380,000 small and medium-sized enterprises (SMEs) and corporate clients, aiding professionals in boosting efficiency and improving client experiences.
The acquisition is expected to complement Wolters Kluwer's existing tax and accounting solutions across Europe, extending its comprehensive coverage of accountants' workflows from pre-accounting to post-accounting.
Post-acquisition, more than 130 full-time employees (FTEs) based in Belgium and France will join Wolters Kluwer Tax & Accounting Europe, which operates in ten countries across the continent.
In 2023, the gross revenues of the acquired solutions grew by 23%, reaching €34 million. Approximately 90% of these revenues are recurring, with the majority being generated from the Benelux region and France.
