Gateley (Holdings) Plc has announced the acquisition of Capitus, a UK specialist tax incentives advisory business. Capitus, to be renamed Gateley Capitus, is the first acquisition that Gateley has made since its admission to AIM in June 2015.
Terms of the deal
Consideration payable comprises £1.59 million in cash, funded out of the Group’s existing cash resources and the issue of 1,122,753 ordinary shares in Gateley, which, based on Gateley’s closing share price on 8 April 2016, gives a total consideration of £2.72 million. The acquisition is being made on a net working capital neutral basis. Capitus is a profitable and well established business. In the year ended 30 June 2015, Capitus had revenues of £1.38 million and generated an operating profit of £593,000. The Board expects the acquisition to be immediately earnings enhancing.
Background to Capitus
Established in 1997, Capitus is a UK specialist tax incentives advisory business, advising institutional and professional investors on their commercial property transactions. Capitus co-founders, Kevin Meyer and Aubrey Calderwood have over 50 years’ combined industry experience. Capitus has offices in London, the Midlands, Northern Ireland and the Republic of Ireland, allowing it to serve the entire UK market, as well as providing its services to overseas projects. Capitus’ tax incentive advisory services extend to capital allowances, international tax depreciation, investment incentives (for regeneration and sustainability) and research and development tax reliefs.
In the capital allowances market, press sources have estimated that there are in the region of £96 billion of “unclaimed” allowances in the UK, illustrating the scale and financial significance of this allowance alone. It is a core market where Capitus has combined accumulated skills from two highly complementary disciplines, surveying and taxation expertise, to enable it to offer a premium specialist client service. Capitus’ management believe that recent changes to tax legislation in the UK will lead to further increased demand for expert advice in these areas.
The acquisition of Capitus is consistent with Gateley’s growth strategy to acquire businesses offering complementary professional and other specialist services to clients in Gateley’s target markets. Capitus has developed a strong blue chip client base of national and global companies which provide regular, repeat business. The addition of Capitus to the Group also provides Gateley with expertise in a range of tax incentives, opening up attractive and growing markets and diversifying the Group’s income streams. A number of new business opportunities have already been identified within the Group’s existing real estate and tax practices.
Gateley Capitus will operate as a wholly owned subsidiary of the Group with its own existing dedicated management team and employees. An operating board, made up of senior management from both Gateley and Capitus will oversee the ongoing delivery and development of the business.
Commenting on the acquisition, Michael Ward, CEO of Gateley, said:
“I am delighted to welcome Capitus to Gateley; its addition to the Group is in line with the strategy we outlined at flotation last June, to make selective acquisitions which offer complementary specialist services. Capitus is a recognised and highly respected tax incentives advisory business and I am particularly excited by the additional expertise and cross referral opportunities the business will bring to the Group.”
Commenting on the acquisition, Kevin Meyer and Aubrey Calderwood (pictured), co-founders of Capitus said:
“This is a very exciting opportunity for Capitus. It provides us with an excellent platform for our continued growth and allows us to expand the range of services that we offer. We have, for some time, realised that having access to high quality legal expertise, particularly in the areas of real estate, construction and tax, would enhance the quality of services that we can offer our clients. Our tie up with Gateley, which we believe to be the first between an RICS regulated firm and a full service national law firm, gives us access to this expertise and provides us with many additional commercial opportunities. We are confident that this shall help us achieve our aim of becoming the number one fiscal incentives practice in the UK.”
AJ Galdeano Consulting has joined Ernst & Young, the EY member firm in Brazil, to expand its tax services. The focus is on accounting compliance and reporting as well as business process outsourcing. AJ Galdeano’s capabilities span accounting, treasury, tax and payroll functions to complement EY services offered across the Americas.
“Anticipating long-term growth in the Brazilian economy, EY is building Tax capabilities to provide a full range of services for clients growing and investing in the country moving forward,” said Kate Barton, EY Americas Vice Chair, Tax Services. “The current economic environment is likely to rebound, rewarding those who had the vision to selectively strengthen their talent and resources. EY firms currently offer Accounting Compliance and Reporting Business Process Outsourcing (ACR BPO) in 150 countries with 2,100 dedicated global professionals.”
“These services play an increasingly important role in Brazilian companies’ operations,” said Tatiana da Ponte, Tax Managing Partner for EY Brazil. “The acquisition allows EY Brazil and the larger network of EY firms to provide a more comprehensive suite of services to clients in the geography.”
AJ Galdeano will become part of the EY Brazil Global Compliance and Reporting team, adding 61 professionals in Sao Paulo and Rio de Janeiro while continuing to serve its 34 legacy clients including public companies, large multinationals and fund management firms.
BDO has announced the appointment of Tokyo XBorder Tax Co. (TXB) as the new tax firm in Japan. TXB was most recently a member of the RSM international network, but has also been affiliated with BDO in the past. The timeline of the Firm is as follows:
October 2002: Established Sanyu Tax Co.
December 2009: Changed firm name to BDO Tax Co.
January 2013: Changed firm name to Tokyo XBorder Tax Co.
April 2013: Merged with Murayama & Co. and joined RSM International network
October 2015: Changed firm name to BDO Tax
TXB will change its name to BDO Tax and become a BDO Member Firm on 1 October 2015. The firm will commence with 3 partners and 40 staff, specialising in international tax, expatriate tax, transfer pricing, bookkeeping, tax inheritance, payroll and social insurance services.
BDO Tax Co. will provide complementary services to those offered by the existing two BDO audit firms operating in Japan, BDO Toyo & Co and BDO Sanyu & Co.
BDO Tax Co. Managing Partner Nobuyuki Nagamine commented “I am particularly pleased to be returning to the BDO network and to have the opportunity, together with my team, to work alongside BDO firms to provide exceptional tax services to our clients”.
Nobuyuki has provided extensive tax and audit professional services to Japanese companies in the US and Japan for the past 30 years. In the United States he headed up practice development efforts as the Partner-In-Charge of the Midwest Area of Japanese Practice for KPMG LLP.
Stephen Darley, CEO of BDO Asia Pacific said: “The BDO network and our member firms in Japan work cohesively together with a common purpose and one vision – to be the leaders for exceptional client service. The addition of BDO Tax Co. completes our full professional services offering in Japan under the BDO name and brand, benefiting BDO Member Firms and their clients alike.”
Avalara today announced that it has acquired VAT Applications NV (iVAT), the developer of the iVAT suite of VAT compliance software and services for businesses of all sizes.
Based in Belgium, iVAT is an important acquisition for Avalara as it expands its global reach and accelerates its ability to provide accurate VAT content to support merchants in Europe and worldwide.
“This deal is a great win for Avalara and businesses dealing with the burdens of tax compliance around the world,” said Scott McFarlane, founder and CEO of Avalara. “Our goal is to offer the most comprehensive portfolio of cloud-based tax compliance solutions on the planet, and adding the iVAT portfolio is a big step in that direction.
“Over the past 14 months Avalara has extended its leadership in the US sales tax compliance industry with acquisitions of leading content and technology providers for US telecommunications, hospitality, fuel and other excise taxes, digital goods, as well as internationally with the addition of Brazil and now European VAT,” McFarlane continued. “We have surpassed every competitor that existed when we began disrupting this marketplace more than 10 years ago and now stand alone in the market with the breadth and depth of our coverage.”
iVAT offers a comprehensive array of VAT determination and compliance solutions, including a cloud-based tax determination and invoice preparation solution and an automated VAT compliance service for filing returns in all EU countries in the required formats and appropriate languages. iVAT customers range from small and medium enterprises to some of the largest firms in Europe. Although iVAT solutions will improve Avalara’s determination service offering – Avalara already provides calculation in more than 190 countries worldwide – the major advance comes from the addition of automated compliance services, alleviating significant burdens for any international business.
“As a market leader for cloud-based tax compliance automation, Avalara is an ideal match for VAT Applications,” said Prof. Patrick Wille (pictured), founder and CEO of iVAT and a recognised expert in VAT legislation. “Our extensive library of statutory tax content incorporates the rules and provisions that govern the determination of the applicable VAT regime. Joining forces with Avalara will help advance our business and meet the demands of today’s fast-growing global marketplace.”
“Filing VAT returns for goods and services sold in a single EU country is pretty straightforward, but cross-border transactions are extremely complex,” said Richard Asquith, vice president of Global Tax at Avalara. “We are very excited about extending the reach of iVAT to help businesses of all sizes reduce the risks and simplify the complexities inherent in this process.”
FTI Consulting has announced the further expansion of its European tax advisory team, with the addition of nine professionals, including one Senior Managing Director and two Managing Directors, from Global VAT Compliance BV, an indirect tax specialist firm based in The Hague, Netherlands. Terms of the transaction were not disclosed.
Global VAT Compliance BV provides high quality, international tax advice to medium-sized and large multinational companies, covering every aspect of VAT compliance including registration, representation and reporting.
Marvin Rust, Head of European Tax Advisory Services at FTI Consulting said, “We are delighted with the expansion of our tax advisory team. The addition of Global VAT Compliance’s centralised processes and state of the art technology enables us to offer the full range of VAT and tax services, and further enhances our offering to our clients who seek a real alternative to the Big 4.”
Henk Hop, CEO of Global VAT Compliance, BV, will be joining FTI Consulting as a Senior Managing Director. Commenting on the transaction Mr. Hop said, “We are bringing a top class tax team and client base to FTI Consulting. We look forward to combining the strength of our expertise with FTI Consulting’s global outreach and breadth of services, offering our clients a broad spectrum of services and support.”
Mr Rust and Mr Hop were both tax partners at Arthur Andersen and then Deloitte, post transaction.
Avalara, Inc., a leading provider of cloud-based software delivering compliance solutions related to sales and excise tax, VAT, and other transactional taxes, has announced that it has acquired EZtax®, Inc., a leading provider of tax compliance solutions for the telecommunications industry.
The $5.6 trillion worldwide telecom market1 is subject to multiple tax laws and regulations that are highly complex and constantly changing. EZtax offers cloud-based solutions that address this complexity. The company’s flagship product, also called EZtax, provides telecom service providers with a fully automated tax solution for accurately calculating and filing taxes due on their services across the US and Canada.
“As the telecom industry rapidly adopts more data-centric services such as VoIP, broadband and wireless, tax agencies are actively considering legislation that could impose additional tax liabilities on an already highly taxed and complex industry,” said Scott McFarlane, founder and CEO of Avalara. “EZtax eliminates these complexities and advances our strategy of helping customers in every industry to simplify and automate tax compliance in cloud-based solutions.”
“As a market leader for cloud-based tax compliance automation, Avalara is the perfect complement for EZtax and our customers,” said Tim Lopatofsky, founder and CEO of EZtax. “Their platform, vision, and highly-effective sales and marketing engine will help accelerate our business and meet the demand in the fast-growing worldwide telecom market.”
Over the past decade, Avalara has developed, purchased or licensed databases containing extensive tax data and knowledge related to sales tax, exemption certificates, excise tax, VAT and other transactional taxes. This acquisition servicing the telecom industry is Avalara’s latest move to broaden and deepen its tax content.
“EZtax offers an extensive tax library that supports thousands of telecom services worldwide,” said McFarlane. “Tax data is updated on a continuous basis by a team of experienced telecom tax experts who understand the complex rules and regulations to keep pace with changes that are required for compliance. We look forward to leveraging EZtax’s expertise and content to extend our reach, and help make compliance easier and more accurate for telecom service providers worldwide.”
Deloitte Australia has announced that its Deloitte Private practice will join forces with leading Melbourne firm, GMK Partners (GMK), the latest in a series of strategic transactions to expand the capacity of the Big Four professional services firm in the private clients market.
As part of a growth strategy, which continues apace under recently appointed CEO Cindy Hook, 12 GMK Directors and 75 staff have been invited to join the firm’s Melbourne Deloitte Private team.
GMK Partners, the largest boutique provider of chartered accounting services to the high-net-worth sector in Melbourne, is the firm of choice for many of Melbourne’s most eminent private and family businesses, investors and professionals, in particular from the medical and legal fields.
“We were particularly attracted to GMK’s strong business advisory skills as well as their tax, superannuation and audit capabilities,” said Sneza Pelusi Deloitte Private Managing Partner.
Sneza Pelusi believes technological innovations are changing the face of professional services and cannot be ignored.
“Cloud technologies give savvy business owners the ability to access their live and up-to-the-moment financial information from anywhere at any time and on any device,” she said.
“This ability to provide business owners with a real-time view of their financial performance has the potential to change the way they think about their business and, in particular, the timeliness with which they can make decisions to optimize performance.”
“The launch of Deloitte Private Connect, our cloud-based offering that combines shared ledger accounting with automated bookkeeping, benchmarking, an online portal and many other digital technologies has been a transformational investment for Deloitte Private. It continues to revolutionise the way we work with our clients.”
Deloitte CEO Cindy Hook believes it is an exciting time of transition for many of Australia’s great family businesses and large private companies.
“We are seeing accounting, tax advisory, succession planning and business restructuring services in great demand in this important part of the Australian economy,” she said.
“Deloitte is committed to helping our clients leverage new technologies to grow their businesses and better structure their affairs. I know the leaders of GMK are equally passionate about helping their clients through this period of change.”
Joining forces with GMK in Melbourne will increase the Deloitte Private group to 120 partners and 1100 staff nationally and create what Deloitte believes is a dominant market position in the private clients sector in Australia.
“This transaction continues the growth momentum of Deloitte Private, with Moore Stephens Sydney West joining our Deloitte Private business in Western Sydney in 2014, followed later that year by market leading Perth-based firm, KD Johns & Co, joining our Deloitte Private team in Perth and the consulting and cloud advisory team from The Lonsdale Group in February this year,” Cindy said.
Kevin Slomoi, a director of GMK, said: “Joining Deloitte Private will expand the multidisciplinary services our team can access to serve our loyal client base, such as new and innovative cloud based technology as well as the intellectual property and deep experience within Deloitte’s broader practice areas such as specialist tax advice and M&A advisory.”
“Our people will be able to access the benefits of being part of the global Deloitte network, an innovative firm focused on developing new products and services, which will provide them with increased opportunities for career development.”
Ryan today announced that the Firm has acquired Taxaccord, a tax automation services firm supporting multinational corporations worldwide with complex tax software implementation and process improvement solutions.
The acquisition complements Ryan’s Tax Technology practice—one of the largest in the tax services industry—and brings an additional team of global tax technology professionals with vast systems integration expertise and knowledge in supply chain, finance, tax, and information technology. Taxaccord founders Angela Myers, Mike Reigle, and Geoff Peck will join the Firm’s Tax Technology leadership team and play a significant role in the continued growth of the practice.
The acquisition also adds a number of significant Fortune 500 relationships to Ryan’s portfolio of clients and will support the growing demand of the Firm’s multinational clients for tax technology solutions that improve accuracy, efficiency, and profitability. Revenue generation and accelerated return on investment will be realized by providing additional access to the Firm’s integrated, single-source solution of more than 45 global tax practices for improving cash flow and minimizing tax liabilities.
“We are proud to add a firm with the industry reputation and expertise of Taxaccord,” said Grant Smith, Ryan’s Tax Technology Practice Leader. “We are excited that these renowned tax technology professionals have joined Ryan to execute our strategy of enhancing the most comprehensive and effective suite of tax technology services in the industry.”
“The acquisition of Taxaccord represents another key milestone in the successful execution of our global growth strategy,” said G. Brint Ryan, Chairman and CEO of Ryan. “Our clients will immediately benefit from the collective strategic insight and experience of this group of tax experts as they deploy global technology solutions that improve efficiency and profitability across the corporate tax function.”