Wolters Kluwer inks $317M deal to buy Tagetik
Wolters Kluwer has agreed to buy Tagetik, which provides corporate performance management software and services for midsized and large corporations, for €300 million (approximately U.S. $317.3 million) in cash. The acquisition expands the existing portfolio of corporate tax compliance and internal audit solutions of WK’s Tax & Accounting division.
Once the deal closes, Wolters Kluwer Tax & Accounting will bring together its corporate offerings, including its internal audit solution, TeamMate, and Tagetik to create a new business unit called Corporate Performance Solutions. Ian Rhind, who has until now headed up the global expansion of TeamMate, will lead the new unit. Marco Pierallini and Manuel Vellutini, formerly co-CEOs of Tagetik, will join the Corporate Performance Solutions executive team.
In 2016, Tagetik saw revenue of approximately $60.3 million, 35 percent of which was derived from recurring business. Most of the company’s revenues are generated in Europe, followed by North American and then the Asia Pacific region. Wolters Kluwer expects the acquisition to deliver an 8 percent return on invested capital, and to have a slightly positive impact on its adjusted earnings in the first full year.
In a statement, Pierallini and Vellutini said, “Tagetik was created to provide solutions specifically designed to address the rapidly expanding needs of the CFO, [and] combining with Wolters Kluwer will help us bring our solutions to more CFOs.”
Tagetik’s corporate performance management solutions are designed to support the workflow of the office of the CFO, such as financial and operational budgeting and planning, consolidation and close process, financial modeling, analytics and reporting. The company’s software, which is modular and integrates with several ERP systems including SAP, Oracle and Microsoft, is currently deployed in more than 35 countries, including the U.S.