Vertex, a Philadelphia-headquartered tax technology company acquired Irish company Taxamo in an all-cash transaction valued at $200m.
The transaction closed May 12 ahead of Vertex’s quarterly earnings call, where the company reported $98.2m in total revenue, up around 10 percent from the previous year.
Kerry-headquartered Taxamo offers cloud-based tax and payment automation for global e-commerce and marketplaces. Those solutions will integrate into Vertex’s cloud portfolio, connecting to the US company’s global customer base.
Vertex has described the acquisition as a strategic move intended to lead to accretive revenue growth. Taxamo Co-founder John McCarthy will join Vertex in a senior leadership role.
Taxamo, a former Siliconrepublic.com Start-up of the Week, became well known in 2015 as new EU VAT rules introduced that year drove increased uptake of its services.
“We remain confident in the strength of our business model, and plan to continue investing in our sustainable, long-term growth as CFOs and CIOs around the world face increased business and regulatory complexity,” said Vertex CFO John Schwab of the company’s strong quarterly performance.
“We believe the investments we are making to accelerate go-to-market, expand our partnerships, deliver new products, and enable great customer experiences are adding positive momentum to our business."