Vertex announced the acquisition of LCR-Dixon Corporation, an expert in SAP technologies and provider of transaction tax automation services and solutions. Shares spiked 2% on the news before closing the day flat at $19.02 on September 24.
LCR-Dixon offers SAP tax reporting solutions, SAP data management tools, and pre-developed ABAP solutions to optimize the integration between clients’ SAP and tax systems. These tools simplify tax complexities in the SAP environment and help clients maintain, analyze, and validate tax data in procure-to-pay as well as order-to-cash.
Vertex and LCR-Dixon were already working together as partners, integrating LCR-Dixon’s PLUS tools into Vertex’s tax determination software, which improved the performance of the SAP indirect tax processes.
Commenting on the deal, David DeStefano, CEO of Vertex, said, “We believe the addition of LCR-Dixon’s unique suite of solutions with Vertex tax technology delivers an incomparable value to our customers who need to manage complex global compliance requirements… Vertex and LCR-Dixon have enjoyed a long-standing partnership and together have delivered best-in-class solutions to some of the world’s largest companies running SAP.”
In response to acquisition news, Needham analyst Joshua Reilly maintained a Buy rating on the stock with a price target of $30, implying 57.7% upside potential to current levels. Stating that the acquisition was not material from a financial perspective, the analyst believes that the deal adds value to Vertex’s competitive position in the SAP ecosystem.
Vertex is a leading global provider of indirect tax software and solutions. The company’s mission is to deliver the most trusted tax technology enabling global businesses to transact, comply and grow with confidence. Vertex provides cloud-based and on-premise solutions that can be tailored to specific industries for major lines of indirect tax, including sales and consumer use, value added and payroll. Headquartered in North America, and with offices in South America and Europe, Vertex employs over 1,200 professionals and serves companies across the globe.
For more information, visit www.vertexinc.com or follow on Twitter and LinkedIn.