H&R Block has signed a definitive agreement to acquire small business financial solutions platform Wave Financial for $405m.
Under the terms of the agreement, H&R Block will acquire all outstanding shares of Wave by paying with available cash.
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After the completion of the deal, Wave Financial will continue to operate independently within H&R Block. It will also retain its core leadership team.
Wave Financial acquisition: Background
Base in Ontario of Canada, Wave offers free accounting, invoicing, and receipt-tracking software to small businesses. It generates revenue by offering payment processing, payroll services and bookkeeping services.
The company offers all its products and services through a platform, used by more than 400,000 small businesses every month.
The acquisition is aligned with H&R Block strategy to bolster its position in the small business market. Besides expanding its product and client portfolio, the deal will provide H&R Block with new growth opportunities.
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By GlobalDataH&R Block president and CEO Jeff Jones said: “Bookkeeping and cash flow management are significant pain points for small business owners and essential to successful annual tax preparation.
“Wave addresses these concerns by delivering financial solutions and a simple user experience on a single platform.
“Wave provides us the opportunity to accelerate our small business strategy and is a great strategic fit, as both companies can leverage each other’s capabilities to bring tax and financial solutions to small business owners, serving more clients in more ways.”
Subject to regulatory approval and customary closing conditions, the Wave Financial acquisition is expected to close in the following months.
