Wolters Kluwer Tax & Accounting (TAA) has announced its acquisition of the accountancy portfolio of Belgian fintech company Isabel Group for €325 million in cash. This portfolio includes several cloud-based financial workflow and data exchange solutions, such as CodaBox, ClearFacts, Clearnox, Zoomit, and Flowin. These solutions are designed to optimize client collaboration and address e-invoicing compliance needs for accounting firms and their clients across Europe.
- Wolters Kluwer’s acquisition of Isabel Group’s accountancy portfolio aims to accelerate digital transformation in the tax and accounting sector. This move aligns with their vision to improve productivity, navigate change, and deliver better outcomes for tax and accounting professionals and businesses of all sizes.
- The acquired solutions complement Wolters Kluwer’s existing European tax and accounting services, providing end-to-end coverage from pre-accounting to post-accounting processes. The integration will include over 130 employees from Belgium and France, expanding Wolters Kluwer’s operations across ten European countries.
- In 2023, the acquired solutions generated gross revenues of €34 million, with 90% being recurring. The acquisition is projected to achieve a return on invested capital at or above Wolters Kluwer’s after-tax weighted average cost of capital (8%) by its fifth year of ownership. The immediate financial impact on Wolters Kluwer’s adjusted earnings is expected to be minimal, with the transaction completing in the second half of 2024 pending regulatory approvals.
“The need to accelerate digital transformation to meet client needs is paramount,” said Jason Marx, CEO, Wolters Kluwer Tax & Accounting. “Isabel Group’s portfolio of leading accountancy solutions aligns perfectly with our vision to enable tax and accounting professionals and businesses of all sizes to drive productivity, navigate change, and deliver better outcomes. This acquisition, which complement the services we provide to Wolters Kluwer customers today, will deliver innovative platforms that deepen the collaboration between accountants and SMEs.”
