In a deal that combines two providers of technology to international corporate finance teams, Wolters Kluwer has reached an agreement on Tuesday to buy Tagetik for 300 million euros ($316.3 million) in cash.
The acquisition brings Wolters Kluwer, a provider of corporate tax compliance and internal audit tools, into the market for corporate performance management solutions.
“The acquisition of Tagetik tightly aligns with our vision to expand our position in the faster growing areas of the corporate tax and accounting market,” Wolters Kluwer Tax & Accounting Division CEO Karen Abramson said. “The combination of Tagetik and [Wolters Kluwer] strengthens our strategic partnership with the Office of the CFO by offering a clearer and more comprehensive view of their business performance from a single provider.”
Upon completion of the transaction, Wolters Kluwer Tax & Accounting will combine its corporate offerings, including its internal audit solution, TeamMate, with Tagetik to create a business unit called Corporate Performance Solutions.
Tagetik’s products support finance teams’ workflows, including financial and operational budgeting and planning, the consolidation and close process, financial modeling, and analytics and reporting.
In 2016, Tagetik, based in Lucca, Italy, had net revenues (unaudited) of about 57 million euros ($60.06 million), of which approximately 35% is recurring. The majority of Tagetik’s revenues are derived from Europe, followed by North America and Asia Pacific.
Wolters Kluwer said the acquisition is expected to deliver a return on invested capital above Wolters Kluwer’s after-tax weighted average cost of capital (8%) in 3 to 5 years. It also said the deal would have a positive but immaterial impact on Wolters Kluwer’s adjusted earnings in the first full year.
Tagetik has both on-premises and cloud solutions. As of 2015, 35% of the company’s customers had annual revenues of more than $1 billion, according to Gartner.
Wolters Kluwer reported 2016 annual revenues of 4.3 billion euros ($4.53 billion). The company is headquartered in Alphen aan den Rijn, the Netherlands.
The acquisition is subject to customary closing conditions.