Wolters Kluwer to Acquire XCM Solutions
September 14 2020 - 1:00AM
Wolters Kluwer to Acquire XCM Solutions
Wolters Kluwer to Acquire XCM
Solutions
September 14, 2020 – Wolters Kluwer
Tax & Accounting announces today that it has entered into
an agreement to acquire XCM Solutions, a cloud-based workflow
solutions provider for professional tax and accounting firms. The
acquisition offers integration opportunities with CCH® Axcess™, our
cloud-based software suite for professional firms in North
America.
Wolters Kluwer Tax & Accounting North America has had a
longstanding strategic partnership with XCM Solutions since 2006,
enabling firms to integrate XCM workflow tools with CCH® ProSystem
fx® on-premise software and, since 2012, with CCH Axcess, our
cloud-based, modular software platform. Wolters Kluwer and XCM
share a common approach to providing innovative, cloud-based
solutions that drive productivity for customers.
Founded in 2002, XCM today serves professional tax &
accounting firms of all sizes across the U.S. and Canada. XCM
solutions help firms control their workflow processes and allocate
their resources in order to achieve greater efficiency,
productivity and profitability. The company’s main product is
XCMworkflow, a cloud-based system that aligns with a firm’s
existing systems and helps them manage all types of work across
multiple clients, projects, and offices, streamlining workflows
between systems and facilitating a more open and collaborative way
of working.
XCM recorded revenues of €19 million in calendar year 2019
(un-audited). Approximately 75% of XCM 2019 revenues were from
cloud-based software, of which the majority was
subscription-driven. XCM also provides outsourcing and
technology-enabled services to support clients during the tax
season. The transaction values XCM Solutions at €136 million. With
revenue and cost synergies anticipated over the medium to long
term, we expect the acquisition to achieve a return on invested
capital above our after-tax weighted average cost of capital (8%)
within 3 to 5 years. The near-term impact on Wolters Kluwer
adjusted net profit is positive but immaterial. Headquartered in
Quincy, Massachusetts, XCM has approximately 440 employees located
in the U.S. and India. The transaction is expected to close in the
next few weeks once customary closing conditions have been
met.
“Our longstanding business relationship make this combination a
natural evolution. Firms are seeking solutions that will allow them
to modernize their workflows to remain profitable, to attract
talent, and to better meet clients’ expectations beyond tax
compliance work. With this acquisition and our CCH Axcess Platform,
we can even better serve their needs,” said Jason Marx, President
& CEO, Wolters Kluwer Tax & Accounting North America. “XCM
also offers technology-enabled accounting and tax outsourcing
services, which will be a great complement to the services we
provide Wolters Kluwer customers today.”
“We are very excited by the opportunity to join Wolters Kluwer,”
said Glen Keenan, CPA, President & COO XCM Solutions. “XCM
customers will benefit not just from the leadership and domain
expertise of Wolters Kluwer but also from their demonstrated
commitment to serve customer needs through sustained investment in
product enhancement and innovation.”
About Wolters KluwerWolters
Kluwer (WKL) is a global leader in professional information,
software solutions, and services for the healthcare; tax and
accounting; governance, risk and compliance; and legal and
regulatory sectors. We help our customers make critical decisions
every day by providing expert solutions that combine deep domain
knowledge with specialized technology and services. Wolters Kluwer
reported 2019 annual revenues of €4.6 billion. The group serves
customers in over 180 countries, maintains operations in over 40
countries, and employs approximately 19,000 people worldwide. The
company is headquartered in Alphen aan den Rijn, the Netherlands.
Wolters Kluwer shares are listed on Euronext Amsterdam (WKL) and
are included in the AEX and Euronext 100 indices. Wolters Kluwer
has a sponsored Level 1 American Depositary Receipt (ADR) program.
The ADRs are traded on the over-the-counter market in the U.S.
(WTKWY).
For more information, visit www.wolterskluwer.com, follow us on
Twitter, Facebook, LinkedIn, and YouTube.
Media
Investors/AnalystsAnnemarije Dérogée-Pikaar
Meg GeldensCorporate Communications
Investor Relationst + 31 (0)172 641 470
t + 31 (0)172 641 407
annemarije.pikaar@wolterskluwer.com
ir@wolterskluwer.com
Forward-looking Statements and Other Important Legal
InformationThis 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.
Elements of this press release contain or may contain inside
information about Wolters Kluwer within the meaning of Article 7(1)
of the Market Abuse Regulation (596/2014/EU).
- 2020.09.14 Wolters Kluwer to Acquire XCM Solutions
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