Vertex acquires Ecosio for inroading into e-invoicing market.

TLDR

Vertex has acquired Ecosio, a European e-invoicing company, for $69 million in cash upfront. The acquisition aims to enhance customer value and global reach by combining Ecosio’s cloud-based network with Vertex’s tax solutions. This move aligns with the growing trend of electronic invoicing mandates in the European Union. Vertex previously attempted to acquire Pagero Group AB but was outbid by Thomson Reuters. The U.S. is also showing interest in electronic invoicing, with the first successful invoice transmission over the U.S. network recently announced.

Key Points

• Vertex acquires Ecosio for $69 million upfront with additional earn-out possibilities
• Combining Ecosio’s network with Vertex’s solutions aims to simplify e-invoicing and VAT complexities for customers

Tax solutions provider Vertex has announced the acquisition of Germany-based e-invoicing software specialist Ecosio. The terms of the acquisition include an upfront cash payment of $69 million as well as additional earn-out possibilities based on Ecosio’s financial performance targets over the next three years. The acquisition is pending Austrian regulatory approval and aims to enhance customer value and global reach by integrating Ecosio’s cloud-based network with Vertex’s own indirect tax solutions.

The move comes at a time when more European countries are mandating electronic invoicing, with several already implementing such requirements, including Hungary, Italy, Belgium, and Greece. Consequently, accounting technology companies have been eager to expand their presence in Europe to tap into the growing e-invoicing market. This acquisition follows Vertex’s unsuccessful attempt to acquire Pagero Group AB, as Thomson Reuters ultimately outbid them for a controlling stake in the Swedish company.

Electronic invoicing is also gaining traction in the U.S., as evidenced by the recent successful transmission of an electronic invoice over the U.S. network by the Digital Business Networks Alliance. This development showcases the increasing interest in e-invoicing solutions in the U.S. as well.