CCH, part of the Wolters Kluwer Tax, Accounting & Legal division, announced that it has signed an agreement to acquire the assets of ATX/Kleinrock. Financial terms of the deal were not disclosed.
ATX/Kleinrock, headquartered in Rockville, Md., supplies tax preparation, accounting and tax research software solutions to more than 48,000 tax professionals and CPAs throughout the country.
The acquisition will help CCH penetrate a market that was not suited for its ProSystem fx Tax application. It's an audience filled with preparers who work with less specialized returns than those who need to use ProSystem.
"There is a market down here that we've never been able to serve with our product line," said CCH president and chief executive Kevin Robert in a conference call announcing the deal. Robert noted that the company will also adapt a number of its non-tax products for the ATX/Kleinrock operations, which will continue to function as a separate unit. The tax prep arena will continue to operate under the ATX name, while the tax research side will continue to function under the Kleinrock brand.
ATX/Kleinrock was owned by UCG, a portfolio of business and professional publishing companies that provide guidance, information, analysis, data and solutions to its customers. ATX/Kleinrock has almost 300 employees and annual revenues of approximately $40 million.
The acquisition is expected to close within the next two months.
Previously on WebCPA:
