KING OF PRUSSIA, PA — Vertex Inc. (NASDAQ: VERX) has successfully acquired ecosio, a prominent provider of B2B integration, specializing in electronic data interchange (EDI) and e-invoicing, as of August 30, 2024. This strategic acquisition aims to bolster Vertex’s offerings in handling complex tax compliance needs for businesses globally.
David DeStefano, CEO of Vertex, expressed enthusiasm about the integration, stating, “We welcome the ecosio team to the Vertex family. E-invoicing is going to change the way international companies handle Value Added Tax compliance and reporting. By integrating ecosio’s e-invoicing capabilities together with Vertex’s leading indirect tax software platform, we’re delivering a comprehensive tax technology solution that addresses the increasingly complex regulatory landscape faced by our customers worldwide.”
Christoph Ebm, Managing Director of ecosio, highlighted the synergy of this partnership, noting, “Joining Vertex was the next logical step in our growth and development. Together, we will help our customers simplify indirect tax compliance and streamline complex Continuous Transaction Controls as well as B2B integration requirements while expanding our addressable market.”
The financial terms of the acquisition include an upfront cash payment of $69 million, with potential earn-outs totaling $76 million in cash and $35 million in Vertex shares. This acquisition was funded using cash on hand and represents a revenue multiple of five based on ecosio’s current earnings. Vertex plans to provide further financial insights during its third-quarter results announcement in November 2024. This acquisition aims to expand Vertex’s tax technology solutions and enhance its service offerings in a rapidly evolving regulatory environment.
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