Vertex, Inc., a provider of tax technology solutions, has announced the acquisition of ecosio, a B2B integration provider specializing in electronic data interchange (EDI) and e-invoicing. The acquisition advances a shared vision to accelerate global commerce and deliver a single, scalable platform for automating transactions and managing indirect tax reporting and e-invoicing compliance. With the increasing prevalence of real-time and near real-time digital tax reporting mandates, e-invoicing is rapidly evolving into a crucial requirement for businesses operating globally across multiple jurisdictions.
Integrating ecosio's cloud-based network with Vertex's indirect tax solutions will enable customers to facilitate the creation, exchange, and clearance of jurisdictionally compliant e-invoices and seamlessly reconcile these invoices with their filing requirements. The combined solution will aid companies in overcoming obstacles to geographic expansion and improve their compliance and reporting operations.
"Over the past 40 years, Vertex has been a trailblazer of indirect tax, continuously evolving and pursuing new growth opportunities for our customers. By acquiring ecosio's advanced technology and extensive e-invoicing and EDI experience, we are committed to delivering a global compliance solution that simplifies both e-invoicing and VAT complexities," said Vertex CEO David DeStefano. "E-invoicing has emerged as one of the most rapidly growing challenges confronting global businesses, and with several large economies soon adopting new requirements, this transaction is a logical next step for Vertex to unlock additional value for our customers."
Compliance has become difficult for businesses due to the proliferation of worldwide VAT reporting requirements and e-invoicing mandates. The combination of Vertex and ecosio will result in a global solution with reliable, end-to-end indirect tax reporting and Continuous Transaction Controls (CTC) capabilities to mitigate the risk of noncompliance. This streamlines the compliance lifecycle from tax determination and periodic reporting with complex CTC requirements and automated B2B communication.
"This new endeavor with Vertex is a strategic move that will significantly enhance our ability to deliver exceptional value to our customers," said ecosio Managing Director Christoph Ebm. "Our shared vision for the future and commitment to growth makes this alignment ideal. We'll create new opportunities and expand our global reach by combining our complementary products and mutual values."
Benefits of the Proposed Acquisition
Vertex believes acquiring ecosio will provide significant benefits, including:
Significantly Expands Market Opportunity: The e-invoicing market is large and growing, fueled by legislation and an increasingly complex compliance environment for companies. By extending its leadership into e-invoicing through the acquisition of ecosio, Vertex expects to expand its market with considerable upside opportunities as the Company helps customers navigate evolving compliance mandates globally.
Advances International Growth Strategy: Today, ecosio directly supports Continuous Transaction Controls ("CTC") and B2G mandates globally. The business opportunity is rapidly expanding as new countries have adopted or are expected to adopt CTC mandates. Customers seek solutions that simplify their returns and reporting processes to address these requirements. Vertex expects to capitalize on this demand by leveraging ecosio's e-invoicing solutions for existing customers and as an entry point for new customer acquisition.
In-demand, Strategically Aligned Solutions to Manage Tax Compliance in the Digital Era: CTC and e-invoicing are vital components in streamlining compliance processes and ensuring timely and accurate reporting. Through this transaction, Vertex will deliver a seamless, end-to-end compliance platform with a scalable, highly available open business network that will enable continuous compliance.
Growth and Financial Impact: The transaction is expected to unlock additional value as the combined Company supports customers at more points through their compliance and electronic data interchange processes globally. Vertex expects that deepening and expanding customer relationships will drive increased revenue growth.
You can visit this website to learn more about the Vertex e-invoicing solution.