Vertex Completes Acquisition of ecosio
September 04 2024 - 6:05AM
UK Regulatory
Vertex Completes Acquisition of ecosio
KING OF PRUSSIA, Pa., Sept. 04, 2024 (GLOBE NEWSWIRE) -- Vertex
Inc. (NASDAQ: VERX) (“Vertex” or the “Company”), a leading global
provider of indirect tax solutions, today announced that it has
completed the acquisition of ecosio, a leading B2B integration
provider specializing in electronic data interchange (EDI) and
e-invoicing, as of August 30, 2024.
David DeStefano, CEO of Vertex, stated, “We welcome the ecosio
team to the Vertex family. E-invoicing is going to change the way
international companies handle Value Added Tax compliance and
reporting. By integrating ecosio’s e-invoicing capabilities
together with Vertex’s leading indirect tax software platform,
we’re delivering a comprehensive tax technology solution that
addresses the increasingly complex regulatory landscape faced by
our customers worldwide.”
ecosio Managing Director Christoph Ebm added, “Joining Vertex
was the next logical step in our growth and development. Together,
we will help our customers simplify indirect tax compliance and
streamline complex Continuous Transaction Controls as well as B2B
integration requirements while expanding our addressable
market.”
The acquisition includes an upfront cash payment of $69 million,
as well as a targeted earn-out of $76 million in cash and $35
million of Vertex shares. The initial purchase price of $69 million
was funded by Vertex with cash on hand and represents a five times
revenue multiple based on ecosio’s current revenue run rate. If
ecosio achieves all financial targets and earn-outs over the coming
three years, the terminal multiple will also be approximately five
times revenue.
Vertex will provide investors with additional details on the
financial impact of the ecosio acquisition when it announces third
quarter 2024 financial results in November.
Visit here to learn more about Vertex’s e-invoicing
solution.
About Vertex
Vertex, Inc. is a leading global provider of indirect tax
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 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 1,400 professionals and serves companies across the
globe.
For more information, visit www.vertexinc.com or follow us on
Twitter and LinkedIn.
Forward Looking Statements
Any statements made in this press release that are not
statements of historical fact, including statements about our
beliefs and expectations, are forward-looking statements and should
be evaluated as such. Forward-looking statements include, among
other things, statements about the anticipated benefits of the
ecosio acquisition, as well as the information concerning possible
or assumed future results of operations, including descriptions of
our business plan and strategies. Forward-looking statements are
based on Vertex management’s beliefs, as well as assumptions made
by, and information currently available to, them. Because such
statements are based on expectations as to future financial and
operating results and are not statements of fact, actual results
may differ materially from those projected. Factors which may cause
actual results to differ materially from current expectations
include, but are not limited to: the outcome of any legal
proceedings, regulatory proceedings or enforcement matters that may
be instituted relating to the acquisition; the costs incurred to
consummate the ecosio acquisition; the possibility that the
expected benefits from the acquisition will not be realized, or
will not be realized within the expected time period; difficulties
related to the integration of the two companies; disruption from
the ecosio acquisition making it more difficult to maintain
relationships with customers, employees, regulators or suppliers;
the diversion of management time and attention on the anticipated
acquisition; adverse changes in the markets in which Vertex and
ecosio operate; our ability to sustain and expand revenues,
maintain profitability, and to effectively manage our anticipated
growth; our ability to maintain and expand our strategic
relationships with third parties; and the other factors described
under the heading “Risk Factors” in the Company’s Annual Report on
Form 10-K for the year ended December 31, 2023 as filed with the
Securities Exchange Commission (“SEC”), as may be subsequently
updated by our other SEC filings. Copies of such filings may be
obtained from the Company or the SEC.
All forward-looking statements reflect our beliefs and
assumptions only as of the date of this press release. We undertake
no obligation to update forward-looking statements to reflect
future events or circumstances.
Contacts:
Investor Relations contact:
Joe Crivelli
Vertex, Inc.
ir@vertexinc.com
Media contact:
Rachel Litcofsky
Vertex, Inc.
mediainquiries@vertexinc.com
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