Wolters Kluwer acquires accountancy portfolio from Isabel Group

By Gloria Methri

Wolters Kluwer Tax & Accounting (TAA) is set to acquire Belgian FinTech Isabel Group’s accountancy portfolio of cloud-based financial workflow and data exchange solutions for €325 million in cash.

CodaBox, ClearFacts, Clearnox, Zoomit, and Flowin facilitate the secure transfer of bank statements, invoices, and other relevant data to optimize client collaboration and address the e-invoicing compliance needs of accounting firms and their clients across Europe. Trusted by over 8,000 accounting professionals and 380,000 small-and-midsize enterprises (SMEs), and corporate clients, these solutions help professionals increase efficiency and improve their clients’ experience.

This portfolio complements Wolters Kluwer’s existing European tax and accounting solutions and enables it to provide end-to-end coverage of accountants’ workflow from pre-accounting to post-accounting. More than 130 FTEs based in Belgium and France will join Wolters Kluwer Tax & Accounting Europe, which spans 10 European countries.

“The need to accelerate digital transformation to meet client needs is paramount,” said Jason Marx, CEO of Wolters Kluwer Tax & Accounting. “Isabel Group’s portfolio of leading accountancy solutions aligns perfectly with our vision to enable tax and accounting professionals and businesses of all sizes to drive productivity, navigate change, and deliver better outcomes. This acquisition, which complements the services we provide to Wolters Kluwer customers today, will deliver innovative platforms that deepen the collaboration between accountants and SMEs.”

“We are proud to have built such strong products and services for the accounting sector with Isabel Group,” said Bram Somers, Chairman of the Isabel Group Board of Directors. We are convinced that Wolters Kluwer Tax & Accounting is the ideal partner to further enhance these services’ success.”

In 2023, gross revenues of the acquired solutions grew 23% to reach €34 million (unaudited). Approximately 90% of revenues are recurring in nature, and the majority are derived from the Benelux and France. The acquisition is expected to reach a return on invested capital at or above Wolters Kluwer’s after-tax weighted average cost of capital (8%) in its fifth full year of ownership.

In the near term, it is expected to have an immaterial impact on Wolters Kluwer’s adjusted earnings. The transaction is subject to regulatory approvals and customary closing conditions and is expected to be completed in the second half of 2024.