Expands Wolters Kluwer’s position in indirect tax solutions for the fast-growing telecoms sector
Wolters Kluwer Tax & Accounting announced today that it has signed and completed an agreement to acquire SureTax, one of the most comprehensive and technologically advanced tax calculation engines available in the U.S. market. The acquisition will allow Wolters Kluwer to build on its existing position serving telecoms companies with solutions for telecom taxation, an area that is highly complex and constantly changing. It will also create an opportunity to extend this position to the utilities and energy sector.
SureTax, based in Alpharetta, Georgia and founded in 2011, has 7 employees and serves over 100 customers. Wolters Kluwer and SureTax have been in partnership since 2012, combining world-class tax content and expertise with best-of-breed technology to deliver one of the most robust and reliable cloud-based telecoms tax software solutions in the industry. The SureTax solution supports telecoms, sales & use and value added tax (VAT) on a single platform, making it unique in the marketplace. The acquisition is expected to deliver a return above Wolters Kluwer’s after tax cost of capital (8%) in 3 to 5 years, or earlier, and is expected to be slightly earnings enhancing in the first full year.
“The acquisition of SureTax aligns with Wolters Kluwer’s strategy to invest in leading high growth positions in tax and accounting software. The profile and number of companies impacted by telecom taxes has grown significantly over the years as more companies are delivering services and solutions via the Internet,” said Karen Abramson, CEO of Wolters Kluwer Tax & Accounting. “Wolters Kluwer Tax & Accounting has long been recognized as a premier provider of telecom content to drive automated solutions. The acquisition of SureTax, with whom we have enjoyed a long-standing business relationship, confirms our commitment to the corporate market and allows us to continue offering customers best-of-breed technology and content solutions.”
Wolters Kluwer will continue serving SureTax customers with the solutions and services they value, including SureTax Telecom — a robust, real-time, accurate tax calculation solution designed specifically for the telecommunications industry — and SureTax Energy, which combines full workflow support and industry-leading Wolters Kluwer tax content.
About Wolters Kluwer Tax & Accounting US
Wolters Kluwer Tax & Accounting US (CCHGroup.com) is a leading provider of tax, accounting and audit information, software and services. It has served tax, accounting and business professionals since 1913. Among its market-leading solutions are the CCH® ProSystem fx® Suite, CCH Axcess™, CCH® IntelliConnect®, CCH® IntelliConnect Direct, CCH® Accounting Research Manager® and the U.S. Master Tax Guide®. Wolters Kluwer Tax & Accounting US is based in Riverwoods, IL. Follow us on Twitter @CCHMediaHelp.
This report contains forward-looking statements. These statements may be identified by words such as "expect", "should", "could", "shall" and similar expressions. Wolters Kluwer cautions that such forward-looking statements are qualified by certain risks and uncertainties that could cause actual results and events to differ materially from what is contemplated by the forward-looking statements. Factors which could cause actual results to differ from these forward-looking statements may include, without limitation, general economic conditions; conditions in the markets in which Wolters Kluwer is engaged; behavior of customers, suppliers, and competitors; technological developments; the implementation and execution of new ICT systems or outsourcing; and legal, tax, and regulatory rules affecting Wolters Kluwer's businesses, as well as risks related to mergers, acquisitions, and divestments. In addition, financial risks such as currency movements, interest rate fluctuations, liquidity, and credit risks could influence future results. The foregoing list of factors should not be construed as exhaustive. Wolters Kluwer disclaims any intention or obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.